hi Mahesh ji,
I have query on P/E and P/B.
As per my understanding for getting high returns we should select stock with less P/E ratio. Is there any range in the P/E ratio (Per sector). Whether P/E ratio range vary from sector to sector? Can you tell me the sector wise range of P/E ratio which is considered to be less.
What range of P/E ratio is less to get high returns for sectors Banking, Pharma, Oil and gas, Automobiles, Media, Infra, Capital goods.
Thanks & Regards
M Rajkumar.
1.P/E means price/earnings ratio ,this is an old criteria to choose stock for investment but I believe on net revenue per share concept instead of P/E.
2.You can find sector wise P/E ratio at moneycontrol site , use this link for getting sector wise P/E ratio http://www.moneycontrol.com/stocks/marketinfo/pe/bse/homebody.php
3. P/B means price/book value ratio for getting a value stock , i prefer base price instead of book value.
4.You can find sector wise P/B ratio at moneycontrol site , use this link for getting sector wise P/B ratio http://www.moneycontrol.com/stocks/top-companies-in-india/price-to-bookvalue-bse.html
5. if you have my book than I suggest you read chapter 3 and 4 for more detail:-
3. INNOVATION OF BASE PRICE SYSTEM. 4. NET REVENUE PER SHARE CONCEPT FOR FUNDAMENTAL TARGET PRICE OF A SHARE.