Valuation of Stock Based on Historical Market PE Ratio

নতুনদের জন্য শেয়ার বাজার বিশ্লেষণ (Fundamental and Technical Analysis)

বই লিংক: https://tinyurl.com/3x8y9wm4

Topic: Valuation of Stock Based on Historical Market PE Ratio | Dhaka Stock Exchange (DSE)

Stock valuation can be done using historical market PE Ratio. PE ratios of the Market of last five years are taken. PE ratios of the company of last five years are also taken. Then Company PE ratio was divided by the Market PE ratios in each year. Then average of the Company PE ratio/Market pe ratio is taken. Whatever the average value is, it is expected that the current stock pe should be, current market pe multiply average stock pe/market pe. Then expected pe ratio of the company will be found. If we multiply the pe ratio with the expected annualized EPS we will get the expected price of the share. It is a very easy but reliable technique to value a share and get some idea about the stock. This method will just give the investor idea about the stock, whether the company is being traded at reasonable price in the market or not. If stock price is found to be fairly traded or undervalued as per this valuation method, further analysis can be done for taking position in the company’s stock. This method will help the beginners in the stock market.  

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#Valuation #PE #Stock #Finance #School #Analysis #Shihab #DSE #CSE

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DISCLAIMER: The topics discussed are explained exclusively from Shihab's personal point of view and understanding or there might be information provided with proper references. All the information provided in this channel is for educational and informational purposes only. The information presented should not be considered as financial or legal advice. This channel does not guarantee you about anything. As a human being content creators can make mistakes unintentionally. Always do your own research before taking any action.

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Bangladesh Securities and Exchange Commission (BSEC) Website: www.sec.gov.bd

Dhaka Stock Exchange - DSE Website: www.dsebd.org     




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