P/E Ratio explained in Tamil | Price by Earnings Ratio | Investment Talks

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Understanding the Price by Earnings Ratio

The price-to-earnings (P/E) ratio is a first and best ratio used to evaluate a company's valuation by comparing its current share price to its earnings per share (EPS).

Definition and Formula
The P/E ratio is calculated by dividing the market value per share of a company by its earnings per share (EPS). The formula is simple:
P E = Market Value per Share / Earnings per Share

Understanding the P/E Ratio

High P/E Ratio: Indicates an overvalued stock or investors' expectations of high growth rates. Companies with high P/E ratios are often expected to have increased revenue in the future, leading to a surge in their current stock prices.

Low P/E Ratio: Suggests an undervalued stock or that the company is doing exceptionally well relative to its past trends. Low P/E ratios can indicate that a company is undervalued and may be a good investment opportunity.

No Earnings or Negative Earnings: Companies without earnings or with negative earnings do not have a P/E ratio.

Types of P/E Ratios

Trailing P/E Ratio: Relies on past performance, providing a more accurate and objective view of a company's performance

Forward P/E Ratio: Uses future earnings guidance, providing insights into a company's expected performance and growth rate.

PEG ratio explained

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0:00 PE Ratio
0:50 Sector PE
2:23 low PE Example
3:14 PEG Ratio
4:18 Forward PE
5:32 Factors affects
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ஷேர் மார்க்கெட்டில் ஒரு நல்ல கம்பெனியை தேர்ந்தெடுக்கக்கூடிய அடிப்படை சூத்திரங்களை இலவசமாக, மக்கள் பயனடைய, வெளிப்படையாக சொல்லி தந்த உங்களின் நல்ல மனதுக்கு என்னுடைய மனமார்ந்த வாழ்த்துக்கள். வாழ்த்துக்கள். வாழ்த்துக்கள். பல்லாண்டு வாழ்க. தொடரட்டும் உங்கள் சேவை. வாழ்க வளமுடன்.

jothidarvelmurugan
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Every videos are unique. Pls make frequent videos. ❤Thanks much

ManMan-tv
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Cadila, Ashok Leyland, bel, Bata, coal india, TITAN, TATA MOTORS, TATA CHEMICAL, ITC LIKE SCRIPS WERE ADDED TO MY PORTFOLIO FEW YEARS BACK USING THIS PE CONSIDERATION NA

pugazhendhic
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Grmoverseas
Knr construction
Union bank
Southindian bank
Chambal fertilizer

All are undera valued stock

nagarajanmano
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Godawari power and IMFA... Both give 200% return.. I invested 10k in each... Some quantities sold @ 70% return...

nageswaranradhakrishnan
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Sir Allcargo logistics company pathi analyse panni oru video podunga
.

nageswaranradhakrishnan
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நீங்கள் எப்பொழுதுமே சூப்பர் தான் சார் 🌟🌟🌟🌟🌟

selvannm
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Thanks for your detailed berif about PE its very informative.

prakashsubramani
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Forcasting EPS ah every stock ku eppidi therichikuradhu ...?

manicoins
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Explanation super and simple please do more....

vasanthakumar.k-yg