Shreyaa Kapoor Instagram – Markets are extremely volatile but how to know if a stock is overvalued or worth buying? 😅
Well the concept is called intrinsic value – where you find the actual value of the share rather than getting swept away by the market price, as discussed in the reel! 🪴
But then how do you find the intrinsic value of a share?
One of the simplist way to do so is checking the P/E ratio or the price to earnings ratio!🙌🏼
It is the ratio of a company’s share price to the company’s earnings per share. 💯
You can compare it to the industry average and its peers to see how the company you are eyeing is performing. 🌱
Please note that this metric also is often not sufficient as you also need to see variables such as future growth prospects etc. 📈
So look at PE only as a directional answer!🌟
Dropping other ways to figure out intrinsic value soon!👩🏻💻
Please note – this is not a buy sell recommendation for any stock. The companies are taken as examples for educational purposes only!🙏🏼
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[investing tips, investing basics, stock market, Bajaj housing, PE ratio, share market, personal finance] | Posted on 21/Sep/2024 20:00:07
