Decoding P/E ratio in stock investing

Decoding P/E ratio in stock investing | De-influencing

Рет қаралды 32,596

Күн бұрын

Have you been investing in stocks by looking at their P/E ratios? Have you compared stocks of companies from different sectors by looking at their P/E ratios? This video explains why relying only on the P/E ratio is not a good strategy and how you should look at different factors in different scenarios.
00:00 Let's begin
01:28 Changing Price-to-earnings ratio with time
02:40 P/E Myth 1
04:38 P/E Myth 2
08:04 P/E Myth 3
11:55 P/E Ratio Checklist
13:55 Achcha gaya na?
Say hi! 👋 on Instagram: / zero1byzerodha

Пікірлер: 121

@thepratikkulkarni3088 5 ай бұрын

Explaining wihout recommending any company is a great task accomplished!

@Zero1byZerodha 5 ай бұрын

Thanks for the appreciation :)

@Zero1byZerodha 5 ай бұрын

Do you invest in stocks by checking and comparing their P/E ratios? Tell us whether it worked or backfired?

@rolwindcunha8406 5 ай бұрын

@Zero1byZerodha can you please make a video about the sale of shares... Whether it is last in first out or first in first out. Also, about profit booking.. Whether to sell all capital or just take out profits and retain the capital?? Please?

@katta_musings 5 ай бұрын

I use it along with p/b to choose in set of peers. I first pick industry based on macro economics. It worked for General Insurance for me.

@jegann876 5 ай бұрын

It backfired when I bought Polyplex share at 2100 rupees with the PE ratio of 7 and the share took a downward turn and now comes to 980 rupees with PE of 44

@thepratikkulkarni3088 5 ай бұрын

Usyally I do, one of the ratio. Like hdfc kotak asian paints bajaj finance. Hdfc is trading at its all time low p/e bt the the same time they have all time high earnings!!! Business is compounding at more than 15-18% cagr. So yes, if it is absolutely obvios. i invest using PE backed by technical indicators for entry!! This helps me to maintain margin of safety and I can buy good companies at decent valuations and dont worry about downside as I protect it with buying option as hedge to my cash market position.

@alokverma1792 5 ай бұрын

You should have covered P/B too along with its role and usability. ROE should be the next and please compare it with ROIC, ROA, when and where (preferably) to use one. A discussion on DuPont analysis will complete the discussion on ROE.

@Zero1byZerodha 5 ай бұрын

Hi Alok, thanks for dropping us a line. This video was all about decoding PE, but we've definitely noted your suggestions and passed them to our team.

@ezhil8442 5 ай бұрын

@@Zero1byZerodhaExpecting videos on P/B,ROE pls

@dayal4256 4 ай бұрын

Please do separate videos for market jorgans like P/B, ROCE,ROE,EBITDA,OPM,HOW TO READ PNL, BALANCE SHEET AND CASHFLOW STATEMENT... On Seeing your videos , i am Getting confident that i am learning from a good mentor and that too in very easy and simple terms...Hope you will be doing the videos on the topics which i have mentioned above...Great work team..Keep doing

@govindckumar 5 ай бұрын

Exactly i needed this information ❤

@champ_champ 5 ай бұрын

So grateful for this informative video ❤

@hashermohammed 3 ай бұрын

What makes Stocks investing intresting is . Those qualitative analysis is tricky. And common sense is most valuable qualitu fot an investor

@nirajkumarsharma7549 5 ай бұрын

😮really good.... Please make video on fundamental analysis... How it's work on live example

@HermeticAscetic22 5 ай бұрын

Excellent video; keep posting more. 🙂Also, nice rebranding of the channel name. 07:44 To add some value, 'Enterprise Value' of a company is its total market capitalisation plus its debt minus its cash reserves. 'EBITDA' is a metric useful in figuring out a company's growth or fall from its core operations. 10:50 A current example that comes to my mind is the stock of IREDA.

@Zero1byZerodha 5 ай бұрын

Appreciate the additions you made. Thanks for your love😊

@rajeshwarraoparimala3187 5 ай бұрын

Informative....Great

@shilpagupta2557 4 ай бұрын

Very well explained as always

@jainamshah1049 5 ай бұрын

Amazing. Thanks 😊

@sabudesignsYT 5 ай бұрын

Thank you... very nice info on how to look at P/E ratio

@Zero1byZerodha 5 ай бұрын

Thank you 🙌

@forbetterself 5 ай бұрын

THANK YOU

@shravandubey7072 5 ай бұрын

Jo aap bata rahe hai vo achchi tarah se samajh aa jayega

@hashermohammed 3 ай бұрын

Haha. Prateek Teacher alwayd rockz. fed up of many ads with PE. Never fell for it though

@sanketshah9104 5 ай бұрын

Like for banking, one looks at P/B ratio. ❤ De-influencing videos.

@DwarikaTripathy 5 ай бұрын

Fantastic!

@ajaykannan6562 5 ай бұрын

Brilliant video. Thanks for making this.🎉

@Zero1byZerodha 5 ай бұрын

Thanks for your love ❤

@saij910 3 ай бұрын

Thanks for the video… please make a video on how to analyse banking stock.

@siddharthjain6629 5 ай бұрын

I Love De Influencing. You guys are doing a Great Job

@Zero1byZerodha 5 ай бұрын

Thanks so much!

@MrCoolprax 4 ай бұрын

Beautiful video Never really understood this so well before

@Zero1byZerodha 4 ай бұрын

Glad it was helpful!

@nitinkamath.A 5 ай бұрын

Great info

@user-qe7zb9ob6h 5 ай бұрын

Great video. Please create a video on the looming economic event - Stagflation (from a Global and India perspective). And, the type of assets (e.g. gold) people should invest in to safeguard their portfolio during such an event.

@Zero1byZerodha 5 ай бұрын

Noted 🙌

@govindckumar 5 ай бұрын

I think one point can also be added - comparing PE ratio of complete sector and then doing comparison

@Zero1byZerodha 5 ай бұрын

Noted 👍, Thanks for adding this here :)

@harshitgarg6030 5 ай бұрын

Please make a video on how to find a stock with live demo and in each sector. How should one make decision in making a portfolio

@Karthik.R.V 5 ай бұрын

Prateek Bhai is always fun to watch with the way he explains and makes everyone understand and hey can we get a video about PCR

@Zero1byZerodha 5 ай бұрын

Thanks for your kind words Karthik :)

@deeptripathi03 5 ай бұрын

brilliant.

@0000_You 5 ай бұрын

thxs for informative details😊

@Zero1byZerodha 5 ай бұрын

Thanks :D

@ARV8800 5 ай бұрын

great video guys

@Zero1byZerodha 5 ай бұрын

Thank you 🙌

@sarathchandrarepaka9595 5 ай бұрын

I have as always absolutely loved your explanation and i would like to know more if the learn app covers these concepts on fundamentals

@Zero1byZerodha 5 ай бұрын

Thank you 😇

@demudubabus6968 5 ай бұрын

Good video

@flawedtruth 5 ай бұрын

How is a average PE ratio for a sector fixed? While some are 100, some are 500, how is this value determined and will it be consistent

@user-to5tn5uw8j 5 ай бұрын

Great work Guys. A potential topic for your team could be why stocks falls when the qtrly results are good and vice versa( Eg Dec'23 results of Indian IT companies) The Gloom and Doom is still not over for them but the priced moved due to the gud results posted by NASDAQ listed IT companies.

@Zero1byZerodha 5 ай бұрын

Thanks for the suggestion! Can you please let us know on what should be the main topic for this? Is it impact of foreign news on Indian stocks?

@user-to5tn5uw8j 4 ай бұрын

Indian Stocks as foreign news impacts are pretty obvious. I, intrigued as to why does a company share prices falls when its results are good @@Zero1byZerodha

@avi130avi130 5 ай бұрын

👍🏻

@sachinmehta3017 5 ай бұрын

Every influencer thrashes PE ratio but never speaks abt comparison with the company's historical median PE. This is extremely important because ultimately law of averages in the long term is the best way to measure the prospects of a company

@Zero1byZerodha 5 ай бұрын

Hey Sachin, appreciate your input.

@VSR03 5 ай бұрын

A De-Influencing video on "Community Benchmarking of Portfolio"

@Zero1byZerodha 5 ай бұрын

What’s community benchmarking?

@VSR03 5 ай бұрын

@@Zero1byZerodha Some apps are providing portfolio analytics with set of rules and community benchmarking is like ranking.

@mgferozkhanyti 5 ай бұрын

Wonderful way of presentation.... please make videos related to screeners to be used for stock selection

@Zero1byZerodha 5 ай бұрын

Thanks for your kind words :)

@v6i6v6e6k6 5 ай бұрын

Why low price to book is important for bank while buying it?

@Rajeshsinghkumar 5 ай бұрын

As a fresh inveator, what and how to check stocks.. Pls guide

@wilsonlobo972 5 ай бұрын

Very good information

@Zero1byZerodha 5 ай бұрын

Thank you

@rolwindcunha8406 5 ай бұрын

@adityashinde410 5 ай бұрын

Please cover how to do fundamental analyse US stocks. Since the US companies data is not audited, can’t trust it completely. Thanks

@sideprince69 4 ай бұрын

About crypto investing platforms in India... Which are safe platforms?

@sahilgadekar6406 5 ай бұрын

Could you please make one video on which information and ratios to check ,while looking high growth companies...?

@Zero1byZerodha 5 ай бұрын

Thanks for the suggestion 🙌

@krinu 4 ай бұрын

rather Price to book P/B and ROE is transparent than just looking the PE alone

@ghantaavinash10 5 ай бұрын

I want 20% cagr what etf and stocks to invest guodence please😊

@manoharbs 5 ай бұрын

Great video,all the influencers say pe of that bank is low 😂at COVID levels and stock is good enter 😂joke on them 🎉

@Zero1byZerodha 5 ай бұрын

Thanks for your appreciation 🙌

@kaiserbeigh 5 ай бұрын

I believe p/e is the estimate of growth in the future

@Zero1byZerodha 5 ай бұрын

You can say that P/E is impacted by the growth of the company's earnings and holds a direct relationship. Hope it helps 😊

@anilkumar-vx7it 5 ай бұрын

Please make a series how to do stock selection sir..

@Zero1byZerodha 5 ай бұрын

Noted 👍

@gurmeetsinghkalsi 5 ай бұрын

Will Dupont analysis be good for all companies or here also we should check the cyclicality of a business ?

@Zero1byZerodha 5 ай бұрын

Do you want us to make a de-influencing video on Du Pont? 😁

@gurmeetsinghkalsi 5 ай бұрын

@@Zero1byZerodha no, not exactly like that. I want a fair and clear view on Dupont Analysis.

@ashwinikumar791 5 ай бұрын

can we have a more in depth video on this? which metrics to use when

@Zero1byZerodha 5 ай бұрын

Sure, can you please elaborate on what details we should dive in? Thanks 😃

@dhjatiya007 5 ай бұрын

I love De-influencing.

@creativity_venky 5 ай бұрын

Expences.

@vikasg6299 5 ай бұрын

Financial Awareness program

@utkarshjha657 5 ай бұрын

Aaj pata chala ki PE ratio bhi change hota hai 😮!!

@Zero1byZerodha 5 ай бұрын

Do watch other de-influencing videos to know some more mind blowing facts 😉

@sohilsharma1929 5 ай бұрын

Just look at FCF FFS :P

@anandbharti3679 5 ай бұрын

Hindi me video banao sir many retail investors couldn't understand,and hni and upper investors also know this..

@SpaceTimeBeing_ 5 ай бұрын

I have never heard someone call cyclical as ciclical

@dummybusiness3520 5 ай бұрын

Pls explain scam 2003 - telgi case

@Zero1byZerodha 5 ай бұрын

Didn't we have a whole web series on it? 😅

@Dhruv_Pvt 5 ай бұрын

Zing ask Nithin to look at the glitches nowadays

@RBG9000 5 ай бұрын

8:23 Tata steel :D

@Zero1byZerodha 5 ай бұрын

We didn't say anything 😅

@katta_musings 5 ай бұрын

Next piotroski score

@Zero1byZerodha 5 ай бұрын

Thanks for the suggestion. Just wanted to discuss if investor use piotroski score often?

@ashishchaudharicool 5 ай бұрын

PEG

@GauravMeenaceb 5 ай бұрын

we are missing abhishek 😅

@Zero1byZerodha 5 ай бұрын

He is busy shooting the next video 😅

@bhaskarbharadwaj7376 5 ай бұрын

First example was jio finance?😂

@Zero1byZerodha 5 ай бұрын

Nope! Why don't you take a second guess? 😅

@harshaaah 5 ай бұрын

Vehicle insurance per karo yaar.

@Zero1byZerodha 5 ай бұрын

Can you please let us know what specific you need us to cover in vehicle insurance?

@harshaaah 5 ай бұрын

@@Zero1byZerodha Everything. Just as you did on health/life insurance. Where does all the premium money go? Is there any returns after due date? Is there a due date?