What's PEG ratio?
When to use it?
What does it tell?
Everything answered in this #Thread🧵
#StockMarket #Stocks #Investment #invest #Investing
@harrie007 @Ishan_Narayan_ @kaushaldarshan_ @mystock_myview @caniravkaria @kuttrapali26 @SmartSyncServ @mishika_chamria @suru27
(1/4)
When to use it?
What does it tell?
Everything answered in this #Thread🧵
#StockMarket #Stocks #Investment #invest #Investing
@harrie007 @Ishan_Narayan_ @kaushaldarshan_ @mystock_myview @caniravkaria @kuttrapali26 @SmartSyncServ @mishika_chamria @suru27
(1/4)
👉CLSA has flagged mean reversion as a derating risk for Indian equities.
👉A record valuation premium in equities as well as domestic bonds indicates low margin of safety.
👉A simple valuation mean reversion anchored on bond yields indicates fear of 30% in Nifty.
(2/4)
👉A record valuation premium in equities as well as domestic bonds indicates low margin of safety.
👉A simple valuation mean reversion anchored on bond yields indicates fear of 30% in Nifty.
(2/4)
👉About individual stocks in NSE500, 55% have current TTM PE higher than 5 year avg.
👉At high volatility & stretched valuations, PEG ratio can do good in quality stock selection as high PE stock can be a good bet if it is expected to report strong earnings growth.
(3/4)
👉At high volatility & stretched valuations, PEG ratio can do good in quality stock selection as high PE stock can be a good bet if it is expected to report strong earnings growth.
(3/4)
👉PEG ratio refines the standard PE multiple of a stock by including its projected earnings growth. It is calculated by PE/EPS growth.
👉Stocks with PEG ratios of less than 1 are considered undervalued, whereas those with ratios more than 1 are considered overvalued.
(4/4)
👉Stocks with PEG ratios of less than 1 are considered undervalued, whereas those with ratios more than 1 are considered overvalued.
(4/4)
I hope the thread was useful. Do you use PEG ratio in your stock selection process? Lemme know in the comments below.
You can also join our telegram channel where we send lots of charts & knowledge for absolutely FREE of cost!
telegram.me
You can also join our telegram channel where we send lots of charts & knowledge for absolutely FREE of cost!
telegram.me
Loading suggestions...