It compares a companyโs current stock price to its earnings per share (EPS). A high P/E ratio might indicate an overvalued stock, while a low ratio could suggest undervaluation. Investing in stocks with low P/E ratios might offer potential value if the market underestimates their growth prospects.
P/E Ratio = Price per Share / Earnings per Share (EPS)
PE of Different Sectors -
Look at the PE of Different Sectors for Example in India
Stock PE < Ind PE = Undervalued
But you need to study and find the reason why its PE < Ind PE
1) JBMA - Incorporated in 1983, JBM Auto Ltd is in automotive business that manufactures and sells sheet metal components, tools, dies & moulds, and buses including sale of spare parts, accessories and maintenance contract for Buses
1) Golden Cross 2) Bounced from 200 EMA 3) EMA Confluence 4) Higher High 5) High Volume 6) Narrow Range 7) Microcaps with sales ๐ผ 8) Dividend stocks 9) Penny with sales ๐ผ 10) High Promoter stake