Historical PEs of nifty companies and my indications

#1
Historical PEs of nifty companies and indications

HI all,

I am attaching the historical PE values of Nifty companies herewith.

The PEs are compared with the current levels for screening of possible investment options based on the following assumptions.

1. I have looked into nifty companies only, assuming that these are fundamentally good companies in NSE.

2. The buy indications are based the current PE range within 20% of the historically low PEs.

3. The sell indications would be based on PE in the range of 20% within the historically high PE. (Unfortunately there are none at this time, owing to the present condition of the market)

I, am submitting this for your review and suggestions so that we can improve on the same.

Kiran
 
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#2
hi kiran,

would you please send me formula of PE RATION? because it is basic question in my mind. because i dont about any technical analysis. i read much time about pe ratio but do send me definition and formula

dilip
9226085319
 

pkjha30

Well-Known Member
#3
Hi

Nice to see this.

There are some omissions

L&T
UNITECH
STERLITE

SIEMENS
ACC
BHARTI

would you like to tell us why PE alone should be the basis of these calls.
Normally , at the height of bull market companies command astronomical PE.So fall from high PE may not be an appropriate criteria.

I think at such times one should also look for other factors
1. Growth factor.
2. Debt
3.Cash flow
4. Net profit for last three years, say drop of 20% from previous quarter indicates trouble and reason for low PE
5.Sales figure
6.Cash reserves, if any

May be other factors to be added by others.

pk:)
 
#4
Hi

Nice to see this.

There are some omissions

L&T
UNITECH
STERLITE

SIEMENS
ACC
BHARTI

would you like to tell us why PE alone should be the basis of these calls.
Normally , at the height of bull market companies command astronomical PE.So fall from high PE may not be an appropriate criteria.

I think at such times one should also look for other factors
1. Growth factor.
2. Debt
3.Cash flow
4. Net profit for last three years, say drop of 20% from previous quarter indicates trouble and reason for low PE
5.Sales figure
6.Cash reserves, if any

May be other factors to be added by others.

pk:)
HI

1. Yes, There are omissions, I am searching for the data on those.

2. As mentioned in the assumptions, these companies are assumed to be the best of Indian companies. So they would whether the slow down and come up. (say in 2.5 to 5 years)

3. One should be looking to all the mentioned factors. (Growth factor, Debt, Cash flow).

These are indications on which companies one should be investigating.

What I would suggest is that if any one can project the cash flows of some companies (a draft would do. we can improve together), then we can work out an investment model.

best

Kiran
 
#5
#6
Hi,

Thank you for the information. Suggestions:
- we should add the price of the stock on the day of calculation which used to arrive P/E ratio
- As the market is still volatile, some of the stocks might have fallen 50% after a week. And they may be more attractive too..

regards

Raj
 
U

uasish

Guest
#7
Plz fix your Time Frame,so that the Staying Power & Conviction do not Lack in the process.
 

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