Sometimes 40 can be low PE or sometimes it can be high PE. You cant say buy low PE and sell high PE. Some sector PE trade above 100 and few 20. Whenever u read without comparision actually u r doing incorrect.
IF PE high it means it will outperforming sector than costly Valuation
Mostly good companies keep trading in premium than actual valuation.
#investment
PE = Share price/EPS.
EPS is earning per share.
EPS should not negative otherwise company is loss making company.
If u filtering good stock then EPS should be positive and higher high of atleast last 5 yrs.
If PE and PB less than relative Index PE & PB then it means it trading in discount but still lots of if n but to say its value buy. So better should see big tf chart and trend before investing.
Dividend mostly ppl say should be good or high. But its not the case few company dont give dividend and reuse for company growth.
So for me company good and its giving or not providing dividend doesn't matter atall.
Tata motors is perfect example of loss making company. Check eps in neg.
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