Nifty P/E


P/E Ratio : P/E ratio is a reflection of the market’s opinion of the earnings capacity and future business prospects of a company. Companies which enjoy the confidence of investors and have a higher market standing usually command high P/E ratios. This ratio indicates the extent to which earnings of a share are covered by its price. If P/E is 5, it means that the price of a share is 5 times its earnings. In other words, the company’s EPS remaining constant, it will take you approximately five years through dividends plus capital appreciation to recover the cost of buying the share. The lower the P/E, lesser the time it will take for you to recover your investment. Its one of the most important Ratios you can look at.

BUY Signal : Once PE goes below 14.
When NIFTY PE goes below level of 14, start accumulating the stocks and invest your money in 4-5 installment over some months. Make sure that markets are going up and down and moving in a range. If PE goes below 11, its a must BUY!!

SELL Signal : Once PE crosses above 22.
Part book the profit once NIFTY PE crosses above 22, PE crossing above 22 does not mean markets has to fall, its only an indication that markets may be overbought and now smart people will start selling there shares to mad public. If PE crosses above 25, its a must SELL!!

What Does Price-To-Book Ratio - P/B Ratio Mean?
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

What Does Dividend Yield Mean?
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.

38 comments:

  1. awesome search sirji.......
    SIr can you tell me where to find nifty p/e and p/b ratio daily.....

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    Replies
    1. @Jallaj,

      Its updated here on a daily basis...

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    2. Do you manually update it OR it gets done automaticall?

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    3. @harshdeep,

      Its manually updated everyday :)

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    4. nifty pe is still 21.25 is it expensive

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  2. sir U r calculating on JUNE result basis when will you calculate on sept result basis?

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  3. how to predict vix

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  4. can you explain briefly about vix. and please tell when to buy with vix charts

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  5. dear sir i was searching on net regarding nifty pe clarification i found it that this is very good site for people can learn lot of point on future contracts.

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  6. my email id is mukesh13777@gmail.com i want to know how can we understand call or put writing is in the market, the basic idea is that the basic rule i know inspite of that there r some confusion on my mind.

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  7. Hi, where can I find historic P/E (say for last 10 years)

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    Replies
    1. Dear Anish,

      Check out the following link at : http://www.nseindia.com/products/content/equities/indices/historical_pepb.htm

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  8. Mr. Sanjay, how to PM you ???

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    Replies
    1. Via my FB Page at : https://www.facebook.com/NiftyPulseSan

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  9. Mr. Sanjay, it seems instead of deleting May, you have deleted July as normally three months are displayed. There is May June and August, no July. Please update accordingly. Regards.

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  10. Where we get data of nifty price & nifty PE Ratio chart so we can easily watch from started mkt to till now. So when to buy & sell we can get idea clearly.

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  11. Hi, i have a question ?

    This NIFTY P/E calculation is based on 1 year trailing basis correct ??

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    Replies
    1. Please check this link for details : http://www.nseindia.com/products/content/equities/indices/historical_pepb.htm

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  12. Why is the price to book and dividend yield values of all indices at low levels compared to PE ratio, if you compare the data with data in January 2008? Also the PE ratio of NIFTY is less than that of midcap indices? Does it mean that the indices are not overvalued?

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  13. May i know when nifty was 9000 at time what was pe ?

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  14. NIFTY PE AROUD 22 SO WHAT TO DO AT THIS LEVEL

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    Replies
    1. SELL Signal : Once PE crosses above 22.
      Part book the profit once NIFTY PE crosses above 22, PE crossing above 22 does not mean markets has to fall, its only an indication that markets may be overbought and now smart people will start selling there shares to mad public. If PE crosses above 25, its a must SELL!!

      Delete

  15. Sir can you explain briefly about vix.

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  16. Sir Kindly update what is nifty pe now

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  17. Why you have shown current Nifty PE in RED color.. What does it indicate?

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    Replies
    1. Do read the foot note, you will understand the same...

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  18. Replies
    1. Tejas, 16th was Saturday, a Holiday, so no update for the same :)

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  19. why you have shown nifty in green on 25.07.2016, what does it indicate and on what basis you arrive at green or red color

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    Replies
    1. @Samir,

      Its nothing but the highest and lowest close for the month

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  20. There is difference in PE reported by NSE website and Business Standard. Currently NSE reported 23+ PE where as BS reported 20+ PE

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