Industry P/E is a good reference point but I don’t treat it as a rule. I first check if the business quality is strong, then see whether the stock is trading below its own history and the industry. A stock can be cheap vs the industry for a genuine reason, so context always matters more than just the number.
Also look at promoter holding over the years. If stable then okay, going down then why?.
Absolutely agree.....Promoter holding says a lot. If it is stable, that’s fine. If it is going down, we should understand why 😊
Ma’am what about industry PE?
Industry P/E is a good reference point but I don’t treat it as a rule. I first check if the business quality is strong, then see whether the stock is trading below its own history and the industry. A stock can be cheap vs the industry for a genuine reason, so context always matters more than just the number.
Got it ma’am thank you
Great article Smita, Learned lot new things,,,
Thank you for reading, it means a lot😊
Thanks for making it so simple. Ashwath Damodaran left me thoroughly confused.
Glad it helped 😊... His concepts are deep, so it is normal to feel overwhelmed at first.
I just try to put the ideas in a way that is easier to use in real investing.
Before doing all these Start with "Promoter Integrity" - Only if step passes -> Go to step 2.
"2. ROE Above 15%" - I think Its ROCE.
Good catch😊 ....Yes, that was a typo, it should be ROCE, not ROE.
Thanks for pointing it out