How to check if a stock is overvalued or undervalued? | What is PE Ratio? What is PEG Ratio?

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Disclaimer: This video is only for education purpose. Consult your financial Advisor before investing your money.
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In this video, I have explained how to check the valuation of a company i.e. how to check if the company is overvalued or undervalued. I have explained 2 ways i.e. PE ratio and PEG Ratio.
PE ratio is calculated as “Price per share” divided by “Earnings per share”.
PEG ratio is calculated as PE ratio divided by earnings growth.
I have explained the PE ratio and PEG ratio with real-world examples of ITC, HDFC Bank, and Jubilant FoodWorks to undervalued which company is undervalued, fairly valued or overvalued.
First, check the PE ratio of this company in the last 3-5 years and identify the median PE. Then compare the current PE with the median PE. If the current PE is more than median PE, you can say that the company is overvalued. If the current PE is less than the median PE, you can say that the company is undervalued.
Secondly, you need to look at the PE ratio of the industry. For example, if Infosys is trading at a PE of 25 then what is the PE ratio of entire IT industry. Ideally, there should not be too much of a difference if the companies are at par. For example, if you want to compare Infosys PE with Industry, you can look at the PE ratio of TCS, Wipro and HCL that are at par with Infosys. This would give you an idea of PE movement of the stock as compared to the other companies in the same sector.

Пікірлер: 873

@SahilBhadviya 3 жыл бұрын

- Course to learn everything about money management: www.sahilbhadviya.in/s/store/courses/description/Everything-about-money-management

@jithujith9656 3 жыл бұрын

@sahil bhadviya for banks NBFC using P/b and book value is better

@ekseju 3 жыл бұрын

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@vijaianand5261 2 жыл бұрын

/v y happy returns of rypmkt&😆😀

@leelaps3446 2 жыл бұрын

@@ekseju aa

@thirumenithestorm 3 жыл бұрын

Not just stoping with theory, Examples and calculations are ultimate .. make him stand tall of others !!!!!

@startcreate4995 3 жыл бұрын

Mujhe English nahi aati lekin aap jo kahte hain vo samajh jata hun. Your English is so easy to understand. And information is so valuable. Thanks.

@richardsalley9848 3 жыл бұрын

I can appreciate this video very much. P/E and PEG indicators are a great snapshot for quick evaluation, before you decide whether or not a company is worthy enough to look into further.

@rajivbakshi7358 3 жыл бұрын

Shahil, Wish you good health with your knowledge on this Happy Holi. You have total command on the subject .God Bless you . R.R.Bakshi

@archanas8689 3 жыл бұрын

You truly explain it the way a layman can understand. I thought I would never understand all this, but you made it so easy with your examples. Thank you

@sujit7292 3 жыл бұрын

Seeing this at 1am with sound OFF and captions ON....concept perfectly cleared....❤❤💯💯

@johnsonmathias3899 3 жыл бұрын

Perfectly explained the stock PE concept in Layman's language . well done

@NaveenKumar-fg7fn 3 жыл бұрын

Such a clear explanation with simple terms which can be understood by a layman. You are doing a great work. Excellent Sahil 👍🏻

@OmPrakash-nz3pr 3 жыл бұрын

Rain of valueable information, grab it as much as you can.

@balajirao1254 2 жыл бұрын

Excellent Sahil. I am a CA and not even my teachers had taught me these concepts in such a simple language.

@SrinivasRao-yu2hl 3 жыл бұрын

Dear Respected Sir, Doesn't have the option to like more than one time else will kill the like button. Thank you, Srinivas

@ndvk2460 3 жыл бұрын

Amazing ya ... Keep moving and our support always there

@005ei60 3 жыл бұрын

Happy Holi Sahil bhai...Great video again.

@BUSINESStoBUSINESS 2 жыл бұрын

Highly worthy video. Thank you

@KayKay-sl2uc 3 жыл бұрын

Sahil I like the way you explain in extremely simple way for anyone to understand. Awesome Bro! Please keep up the good work and be one of those good samaritan to make Indian a Stock knowledgeable and pro investing country like US. It will be healthy for the nation too when atleast half of India starts participating in it. On PE ratio there is a mention where I often find PE to be looked differently for different type of sectors, please shed some light. Thanks again!

@nirenparikh9801 3 жыл бұрын

Definitely a Very Educative & a Helpful Video! Thank U so much!

@gopikannan2895 2 жыл бұрын

Very useful video and I was looking for a video like this for long time..salute

@Josephabhijith 3 жыл бұрын

Excellent Stuff...Kudos !!

@manahilrose1466 3 жыл бұрын

Good going Sahil....very crisp and clear content

@gannesh2509 3 жыл бұрын

Nicely made video - good explanation. Although I knew this tool ( P/E), you have explained it well.. Keep your good work going.

@hitenbt 3 жыл бұрын

Excellent presentation Sahil... Keep it up.. you are amazing & brilliant.

@ambarishrao7085 3 жыл бұрын

I have watched all your videos. All are precise and upto date. I wish all the best and i wish soon you reach million and then 10 million views and subscribers 💐💐💐

@Phantomsonly8288 3 жыл бұрын

I recently came across this channel and really I am very lucky to watch such videos with valuable information on fundamental analysis. The way you explain in a simpler way is really useful to beginners.

@pinnedtosahilbhadviya3293 3 жыл бұрын

W*H*A*T*S*A*P*P ** M*E***~~~**** +1*2*1*3*2*2*4*7*8*4*0**** F*O*R M*O*R*E I*N*Q*U*I*R*I*E*S*~~~~~

@ashisroy8895 3 жыл бұрын

Till date no one has explained in such lucid way. Kudos to you. keep posting such good videos.

@jsudheer5200 3 жыл бұрын

Very valuable information covered with easily understanding words. I had asked the same question in your live Q&A session. You answered the question in the live session and thanks for giving full length explanation bro... Keep going👍.. All the best

@sikkumathews9224 3 жыл бұрын

Wish you the best! Simply brilliant! Your videos are so clear, precise and easy to understand

@sundieepsiingh9697 2 жыл бұрын

Bole toh jhakaas. You have made the complex terminology look so easy. Seedha chakka maar daala. Great stuff young man. Keep up the good work 👍

@DeepakSingh-tu9di 3 жыл бұрын

Bro your the best from all other blogger the kind of information you share no one explain like that you make easy for us to invest in stock market

@vikramshah9576 3 жыл бұрын

Sharing of knowledge without any expatation. Very good. Keep it up.

@prateek4sep 3 жыл бұрын

Helpful content. Great explanation. Even a layman can understand. 👏

@asadshaikh7860 3 жыл бұрын

This guy is the best!! Hats off bro

@gopalakrishnakini5503 3 жыл бұрын

Nice Sahil. Very goo information to judge company to over valued or under valued

@santoshkumarsahu2436 3 жыл бұрын

This is the 1st video that I have seen in your channel. But the way you explain about PE ratio, is very detailed. Thank you for sharing such a nice video. Now I have subscribed ur channel as well.

@karthikrajendran7255 3 жыл бұрын

Thanks for making this video for us Shahil! 👏

@anantranka8998 3 жыл бұрын

To the point and very much informative, I am now addicted to your videos👏

@arvindgandhi1007 3 жыл бұрын

Thankyou brother. Keep rocking. You are doing an excellent work brother. Stay blessed always. Happy Holi.

@youtubecvr9526 3 жыл бұрын

Thanks for the basics Sahil !

@swarajsable2069 3 жыл бұрын

Really wanted this topic video. SIR U DELIVERED IT AND ITS REALLY HELPFUL. 🙏🙏🙏

@krishnapavanvaidyula2246 3 жыл бұрын

Sahil wish you more subscribers,success,wealth and health, the knowledge you share is priceless!!

@kspshivan 2 жыл бұрын

Thank you Sahil. Got a clear knowledge about the PE, PEG ratio, future growth earnings. How to calculate all this things while buying the shares. Very clean and neat info. Great work… Hearty wishes for your extraordinary work…

@venugopalreddy9441 2 жыл бұрын

brother,nice explanation, cover the all industrial stocks thanks

@raghupujar3355 3 жыл бұрын

Now my doubt is cleared Sahil ji... Thank u so much sahilji.... It's very useful information sir..

@ragusri86 3 жыл бұрын

Great explanation, No words to say! Simply amazing.

@suryanarayanamh7699 3 жыл бұрын

Good presentation. I think With in 12 minutes you have made best efforts to cover the topic to the optimum extent to educate the people. Thank you sir for the same.

@nirmalraj4425 3 жыл бұрын

Wow ..!! Another gift 🎁 , Highly Valuable video with Brilliant presentation from Mr. Perfect.💐💐

@kamalkumar3672 2 жыл бұрын

Really helpful video ji. Well explained. Thanks a lot

@ganeshmorde6666 3 жыл бұрын

Good information shared in a simple manner. Very good efforts to make this video.

@misheckndoro2159 2 жыл бұрын

Well explained…learned a lot

@senthilkumar7287 3 жыл бұрын

We understand the concept, thank you SAHIL for your wonderful effort in giving such contentful videos... Thank You My Dear Friend 👏👏👏👏

@arul123prabin 3 жыл бұрын

Wowowowowow ,what a vedio and presentation ..mind blowing..keep it up bro

@gopalakrishnannarayanan8809 3 жыл бұрын

really Nice and crystal clear presentaion... Thanks and Keep rocking...

@GMK_Official 3 жыл бұрын

Outstanding analysis....classic examples and easy to understand language... Wow bro.... Keep rocking.

@Ezra_David 2 жыл бұрын

That was so crisp and on the point. Great content.

@srinivas3801 2 жыл бұрын

Excellent video. Understand complicated pe and peg very easiest way .good teaching skills. Keep it up .

@karmveershekhawat8477 3 жыл бұрын

Valuable information....excellently delivered 👏👏👏

@shantanukulkarni1801 3 жыл бұрын

Very Informative. Happy Holi-Day.

@Ranamrr 3 жыл бұрын

Wow, such a piece of the nice information you have shared so easily. Thank you, bro

@nabarunchoudhury7286 2 жыл бұрын

Simply awesome. Thanks a lot.

@GauravMardikar 3 жыл бұрын

Amazing Sahil. You're awesome man👍👍👍 keep it up. Even the expensive brokers couldn't explain such great things do simply. Hats off to your simplified explanation Sahil👍

@Bhagwanr 3 жыл бұрын

Our dear friend is back with a bang keep it up

@puttajunjaiah 3 жыл бұрын

Actually none of what to say matters in India 😂😂 simple way is look who is in power BJP or Congress. If it's BJP, invest in Ambani, Adani owned businesses blindly. If it's Congress invest in NDTV, Bajaj etc. The party in power will help propel the stock values through all possible ways, legal or illegal. Period.

@KetPan 3 жыл бұрын

I hope you're aware that Bajaj Auto had done exceedingly well in the previous quarter?

@bessyjose9658 3 жыл бұрын

RIL shares are down for long time

@biswarupbanerjee7247 3 жыл бұрын

It is absolutely Rubbish

@abisheikabi8610 2 күн бұрын

I think you surely need a change in mindset

@satyamsheshtiwari3371 2 жыл бұрын

Amazing content!!!!

@rickmiles5297 3 жыл бұрын

You are the first person to explain this in a way I understand. THANK YOU!

@helsonkumar8173 2 жыл бұрын

Good Job Sahil....

@sudhirjadhav8766 3 жыл бұрын

Grt expiained very well pls keep posting such videos.Really helps to understand these complex market.

@jkj1459 Жыл бұрын

FIRST I USED TO SKIP YOUR VIDEOS , BUT YOUR VIDEOS ARE FOUND VERY VALUABLE , AND YOUR INTENTION TO GIVE CLARITY IS AMAZING AND SELFLESS .

@alpacino3989 3 жыл бұрын

Amazing video... especially the exceptions part!

@govindrajan8641 3 жыл бұрын

Simple and superb. Keep it up

@puranshaw7392 3 жыл бұрын

Hats off 🙏. Great Sahil

@krishnappabellary4818 3 жыл бұрын

Ur info is most constructive and advanced. Good luck.

@vaibhavskadam 3 жыл бұрын

Nice explanation Sahil... keep it up 👍🏻👍🏻

@Gireesh-V 2 жыл бұрын

Very Good Explanation.👍 Alway thank you Sahil brother

@satheesh1307 9 ай бұрын

Very good clarity in explaination. I went through so many videos to understand valuation and stock picking. Finally this video gave me the clairty ..

@InvestingNerd 2 жыл бұрын

Very important content right here, PE ratio is so critical when picking stocks for the long term 👌

@user-yj1fu2bb8k Жыл бұрын

my deepest love to u my brother, u r great for amazing sincerity n dynamism

@venkateshgopula490 3 жыл бұрын

Thank you so much for this lovely Video.... Very much clearly explained technical points related to PE ratio.

@Themojii 2 жыл бұрын

High quality video. A lot of good knowledge with examples. Subscribed after watching this

@pritimangla7099 2 жыл бұрын

I checked many videos on this topic but this video was the best video

@Sureshmg-jx2yp 3 жыл бұрын

Ur videos are informative as well as educative🙏 Thank u so much🥰 😊keep it up👍

@prajinavc9311 3 жыл бұрын

Happy holi Sahil bro

@munjaalraval 3 жыл бұрын

You're doing very good job .. God bless you with success

@misterwishdom 3 жыл бұрын

Following you on Quora and now here thanks man you are making it very easy for all of us.

@hemanginimehta5734 3 жыл бұрын

Fantastic explanation. Thank you sirji.very helpful and knowledgeable video. Eagerly Waiting for your next video.Thank you.

@bharattanwar5047 3 жыл бұрын

Nice video and easy to understand by the way i am using these techniques .

@rajendrakumarshinde7267 3 жыл бұрын

Very nice information given by you...🙏

@pushparallapalli2140 3 жыл бұрын

Very useful & clear presentation. Appreciate your skill & hard work

@kandharp1 3 жыл бұрын

God bless you my brother... More more more power to you brother 👍👍👍👍👍

@prasadvsr7172 3 жыл бұрын

Dear as usual, excellent and very valuable information provided. May God Bless you to provide us more such beautiful videos. 👏👌👍🌹🙏

@ramp79 3 жыл бұрын

Excellent presentation. Really it's in layman language as you said🙏

@gbrhyd2020 3 жыл бұрын

Simply beautiful, keep going.Thank you.

@benjaminstutzman7388 3 жыл бұрын

Fantastic video, thank you for this!

@anilchauhan4884 2 жыл бұрын

easy explaination, good job bro..

@rudraprasadganguly6791 3 жыл бұрын

This is truly a very well explained topic of valuations of stocks I have ever seen

@Anonymous-kw7ls 3 жыл бұрын

Your way of presentation is so fluent and clear. Excellent.

@shafeekks7743 3 жыл бұрын

Great explanation Sahil. Keep it up.

@panchukollam7411 2 жыл бұрын

Excellent teaching.. Thanks

@kmvakuda 3 жыл бұрын

Very good information Give more of similar types.

@shinojraghavan 2 жыл бұрын

Thank you very much my friend. I rarely post comments on videos. You made a good one on this and I want to appreciate and thank you for that.

@aarthy1986 3 жыл бұрын

Very useful information bro...many people don't teach ..

@sawantnitin005 2 жыл бұрын

Thank a lot Sahil Sir 🙏