Thread Threadexplaining #PE Ratio & #PEG Ratio & its use in #FundamentalAnalysis

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Views Welcome👉@dmuthuk @Vivek_Investor @datta_arvind @caniravkaria @FI_InvestIndia

#FundamentalAnalysis
#StockMarket

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Price to Earnings (#PE) ratio, also known as price multiple or earnings multiple is the ratio obtained by dividing the current share price by earnings per share (#EPS).

#StockMarket #Investing #FundamentalAnalysis
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P/E ratio is a reflection of the market's opinion of the earnings capacity & future business prospects of a company.

Companies which enjoy high investor confidence & have a higher market standing usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis
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On the face, it would seem that companies with low P/E ratios would offer most attractive investment opportunities. This is not always true.

Companies with high current earnings but dim future prospects often have low P/E ratio.

#StockMarket #Investing #FundamentalAnalysis
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As an #investor your primary concern is with future prospects of a company & not so much with its present performance.

This is why companies with low current earnings but bright future prospects usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis
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Better to invest in a stock with P/E ratio of 30 having good future growth prospects rather than investing in a stock having low P/E ratio of 5 or 6 but has an uncertain or bleak future growth prospects.

But at the same time never buy companies with too high valuations.
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Hence its always advisable to judge #PE ratio in conjunction with prospects of future earnings & growth of the company. This can be done using P/E ratio in conjunction with #PEG ratio.

@caniravkaria @Arpit1223 @FI_InvestIndia

#StockMarket #Investing #FundamentalAnalysis
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Price/Earnings to Growth (#PEG) ratio is calculated dividing company’s P/E ratio by growth rate of its earnings for a specified time period.

#StockMarket #Investing #FundamentalAnalysis
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PEG ratio gives a better picture about valuation of a company as compared to P/E ratio since it takes into consideration the company's earnings growth.

#StockMarket #Investing #FundamentalAnalysis
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In case of companies having high growth rates, their P/E ratio might be high & in such cases using just P/E ratio these high-growth companies would appear overvalued relative to others & in such cases better to use PEG ratio to get clear picture about company’s valuation.
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#investor can use PEG ratio to know if a stock is overvalued or undervalued.

✅PEG ratio greater than 1 means stock is relatively expensive.

✅PEG ratio lower than 1 means stock is below its fair value.

✅PEG ratio will be negative when there is de-growth in earnings.
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Theory of #PEG Ratio gained it’s popularity when #PeterLynch started using it as one of his valuation metrics.

Peter Lynch would always prefer to invest in stocks whose PEG Ratio was less than 1.20.

#StockMarket #Investing #FundamentalAnalysis
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#PEG ratio actually factors-in both price valuation & stock’s future growth prospects.

If handled correctly, PEG can prove to be a reliable intrinsic value pointer.

#StockMarket #Investing #FundamentalAnalysis

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1. LWJ’s sword Bichen ‘is likely an abbreviation for the term 躲避红尘 (duǒ bì hóng chén), which can be translated as such: 躲避: shunning or hiding away from 红尘 (worldly affairs; which is a buddhist teaching.) (
https://t.co/zF65W3roJe) (abbrev. TWX)

2. Sandu (三 毒), Jiang Cheng’s sword, refers to the three poisons (triviṣa) in Buddhism; desire (kāma-taṇhā), delusion (bhava-taṇhā) and hatred (vibhava-taṇhā).

These 3 poisons represent the roots of craving (tanha) and are the cause of Dukkha (suffering, pain) and thus result in rebirth.

Interesting that MXTX used this name for one of the characters who suffers, arguably, the worst of these three emotions.

3. The Qian kun purse “乾坤袋 (qián kūn dài) – can be called “Heaven and Earth” Pouch. In Buddhism, Maitreya (मैत्रेय) owns this to store items. It was believed that there was a mythical space inside the bag that could absorb the world.” (TWX)
#ज्योतिष_विज्ञान #मंत्र_विज्ञान

ज्योतिषाचार्य अक्सर ग्रहों के दुष्प्रभाव के समाधान के लिए मंत्र जप, अनुष्ठान इत्यादि बताते हैं।

व्यक्ति के जन्म के समय ग्रहों की स्थिति ही उसकी कुंडली बन जाती है जैसे कि फ़ोटो खींच लिया हो और एडिट करना सम्भव नही है। इसे ही "लग्न" कुंडली कहते हैं।


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पूर्णिमा में उछाल मारता समुद्र का जल इसकी ऊर्जा के प्रभाव को दिखाता है।


अमावस्या में ऊर्जा का स्तर कम होने पर वही समुद्र शांत होकर पीछे चला जाता है। जिसे ज्वार-भाटा कहते हैं। इसी तरह अन्य ग्रहों की ऊर्जा के प्रभाव होते हैं जिन्हें यहां समझाना संभव नहीं।
चंद्रमा की ये ऊर्जा शरीर को (अगर खराब है) water retention, बैचेनी, नींद न आना आदि लक्षण दिखाती है


मंत्र क्या हैं-
मंत्र इन ऊर्जाओं के सटीक प्रयोग करने के पासवर्ड हैं। जिनके जप से संबंधित ग्रह की ऊर्जा को जातक की ऊर्जा से कनेक्ट करके उन ग्रहों के दुष्प्रभाव को कम किया और शुभ प्रभाव को बढ़ाया जाता है।