undervalued stock anyone ?

Quibit · 26 Re: undervalued stock anyone ? Wed Feb 02, 2011 1:12 pm

Quibit

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Hey Guys!

Lets be friends and help each other. We are one big family!!!

Quibi

tubal · 27 Re: undervalued stock anyone ? Wed Feb 02, 2011 1:36 pm

tubal

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You are my sister or heck, that complicates things

rmnihad · 28 Thanks MONO Wed Feb 02, 2011 1:45 pm

rmnihad

Equity Analytic

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Actually i wanted PER in context of Sri Lanka and CSE listed comapnies. not the general meaning of PER. any way i will try on manual calculation..

Gaja · 29 Re: undervalued stock anyone ? Wed Feb 02, 2011 1:49 pm

Gaja

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will stick to the investment and investment related areas only

thambi · 30 Re: undervalued stock anyone ? Thu Feb 03, 2011 1:49 am

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what is a good price/earning ratio ?

i know it differs from sector to sector but in general what
would you say is a good P/E ratio when yr looking to invest

tubal · 31 Re: undervalued stock anyone ? Thu Feb 03, 2011 8:23 am

tubal

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thambi wrote:what is a good price/earning ratio ?

i know it differs from sector to sector but in general what
would you say is a good P/E ratio when yr looking to invest

According to me, there is no such thing as a good PE ratio. Some companies might trade at very low PE ratios because they have absolutely no prospects of growth. While some companies may trade at very high PE ratios because they have tremendous prospects for growth. On the other hand some companies trade at low PE ratios because the market hasn't identified their growth prospects properly. The prices of those shares will go up increasing their PE. By the same logic, the prices of shares trading at absurdly high PEs should eventually come down (unless they produce excellent results year after year)