Many investors value Oil & Gas companies only on PE ratio… but in the E&P sector, valuation is much more complex. A low PE does not always mean a stock is cheap. If production is declining or reserves are depleting, the company may actually deserve a lower valuation. Key factors that matter in Oil & Gas sector valuation: ✔ Oil & Gas reserves ✔ Daily production growth ✔ Reserve Replacement Ratio (RRR) ✔ International oil prices ✔ Circular debt recovery ✔ Dollar/Rupee parity impact ✔ Exploration success & future discoveries ✔ Lifting & finding cost ✔ Dividend sustainability ✔ Government policies & pricing mechanism Sometimes the market gives premium valuation to companies with strong future discoveries even if current earnings look lower. 💬 Question for senior members: What is the MOST important factor while valuing Pakistan’s E&P companies? 1️⃣ Reserves 2️⃣ Production growth 3️⃣ Dividend yield 4️⃣ Oil prices 5️⃣ PE ratio 6️⃣ Circular debt recovery And which company currently looks strongest for long-term investment? Oil & Gas Development Company Pakistan Petroleum Limited Mari Energies Pakistan Oilfields Limited

In The Bulls and Bears Show, every week, we pick 5 companies and put them through the Bulls & Bears test 🐂🐻. We cover their technicals and fundamentals to help you optimize your entry or exit. This week, we want YOU, the members from Sarmaaya Skool, to be part of that selection! Drop the name of a company in the comments that you'd like us to cover, and it might just make this week's list. Which company do you want us to discuss this week? Tell us in the comments👇

Sitara Petroleum Service Limited (SPSL) IPO is getting massive attention in the market. 📌 IPO reportedly oversubscribed around 7x 📌 Cap price reached very quickly during book building 📌 One of the largest IPOs on PSX in recent years Now I want to know retail investors’ sentiment: ❓Did you apply in SPSL IPO? ❓How many shares did you apply for? ❓Did anyone apply for more than 500 shares? ❓What is your expectation after listing — quick premium or long-term hold? Also interested to know: Do you think recent IPO hype in PSX is justified or becoming excessive? 🤔

Unpopular opinion 👇 90% of people in stock market should not be investing. Yes, I said it. Because what most people are doing is not investing… it’s gambling. They: Buy on “tips” Panic on small drops Sell winners too early Hold losers forever 📉 Result: Losses + frustration 💡 Reality Check: Stock market rewards: ✔️ Patience ✔️ Discipline ✔️ Knowledge Not: ❌ Emotions ❌ WhatsApp tips ❌ Daily trading excitement 🧠 My View: If you cannot: Hold a stock for 2–3 years Understand basic valuation Control emotions 👉 You are better off staying out (or using mutual funds) 💬 Question: Be honest — are you investing or just trading blindly?

Many investors value companies using a “moderate PE” instead of applying extreme bull market or panic market valuations. But why? 🤔 The idea is simple: A company’s valuation should be based on a fair and sustainable PE level where the market is operating under normal conditions — not during excessive optimism or fear. ✅ Very High PE → may reflect hype or temporary excitement ✅ Very Low PE → may reflect panic, recession, or temporary problems ✅ Moderate PE → reflects balanced market expectations That’s why long-term investors often use a moderate PE for valuation because it helps estimate a more realistic fair value. Example: If a company’s PE historically moves between 5x and 15x, an investor may use 9x–10x as a moderate PE for valuation purposes instead of using extreme levels. 📌 Key Factors Behind Moderate PE: ✔ Earnings growth ✔ Interest rates ✔ Sector nature ✔ Debt level ✔ Business stability ✔ Market cycle ❓Question for Investors: How do you determine the “moderate PE” of a company before calculating target price? Historical PE average? Sector PE? Growth rate? Interest rate environment? Or market sentiment? Would love to learn different valuation approaches from experienced members here. 📊