What is a good PE ratio for a stock in India?

As far as Nifty is concerned, it has traded in a PE range of 10 to 30 historically. Average PE of Nifty in the last 20 years was around 20. * So PEs below 20 may provide good investment opportunities; lower the PE below 20, more attractive the investment potential.

What PE ratio is good to buy stock?

A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings.

What is a good PE ratio NSE?

A good Nifty PE ratio lies in 19-20 range. This means the market is fairly priced. A Nifty PE ratio of more than 25 means the market is highly overvalued.

Is a 27 PE ratio good?

Examples of a Good P/E Ratio I’d prefer it to be under 15, but it’s ok if not. It’s also ok if the stock is like P/E = 27. That’s not much different than P/E = 24– if you think about it. Say that a stock has great metrics all across the board, but the P/E is just barely higher than 25.

How high is too high PE ratio?

Investors tend to prefer using forward P/E, though the current PE is high, too, right now at about 23 times earnings. There’s no specific number that indicates expensiveness, but, typically, stocks with P/E ratios of below 15 are considered cheap, while stocks above about 18 are thought of as expensive.

What Nifty 50 PE?

Nifty P/E ratio is the short form of the Nifty Price to Earnings Ratio and is calculated by the average P/E ratio of the Nifty 50 companies. As per Current Nifty PE Ratio Chart today on 17-Dec-2021; Nifty PE Ratio is 23.43 Nifty 50 PB Ratio is 4.25, Nifty Dividend Yield Ratio is 1.19.

What is the PE ratio of Tata Motors?

Tata Motors’s latest twelve months p/e ratio is -12.7x. Tata Motors’s p/e ratio for fiscal years ending March 2017 to 2021 averaged -0.2x. Tata Motors’s operated at median p/e ratio of -2.0x from fiscal years ending March 2017 to 2021.

Is a PE ratio of 7 GOOD?

If you were wondering “Is a high PE ratio good?”, the short answer is “no”. The higher the P/E ratio, the more you are paying for each dollar of earnings.

Is lower PE ratio better?

The P/E ratio, or price-to-earnings ratio, is a quick way to see if a stock is undervalued or overvalued — and generally speaking, the lower the P/E ratio is, the better it is for the business and for potential investors. The metric is the stock price of a company divided by its earnings per share.