Just watched Lecture 1 of Stock Market Fundamentals
I used to think low P/E means a stock is cheap and a good buy. But now I’m realizing it’s not that simple.
P/E only tells us how much we’re paying for 1 rupee of earnings
--> A low P/E can be undervalued… or weak.
--> A high P/E can be expensive… or strong growth.
What’s making sense now
• Compare P/E within the same sector
• Focus on growth (EPS)
• Check past trends
• Don’t ignore fundamentals
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Ahmed Rafique
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Just watched Lecture 1 of Stock Market Fundamentals
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