P/E ratio is what investors should look for in a stock, not its price.
Understand P/E ratio as i do and its significance in making profits in the stock market in both short term and long term.
Most of them really do not properly understand P/E Ratio. It really does not represent the actual definition Price/Earning Per Share. For me P/E ratio is the actual factor in a stock that an investor should look into and it represents the real value of a stock. It may sound little confusing. The once those who understand that the P/E is real value of a stock make lots of money in the market.Become our Priority Member to login and view the Priority Exclusive content.
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So, P/E ratio is always the variable that investors are ready to pay for a stock, its not the stock price. Investors are ready to pay 44x EPS for Cement, 20x EPS for chemicals, 60+x EPS for high growth branded companies, 10x EPS for Sugar, Paper, textile, etc.
What are you waiting for go and find the fair price for the stock you have invested and decide to invest or exit.