I am new to investing in stocks. Can any one explain the meaning of this sentence "At CMP of Rs 313, HSIL trades at PE of 23.5x and 20.2x its FY16E and FY17E earnings of Rs 13.3 and Rs 15.5 per share respectively."
Please go and read the basic of finance and economic books before stepping into investing . Dont just gamble and loose your money !!!! . If you can study the basics and learn by yourself ,you are the best master !!!
Dear Prashanth , we are also started like you brother ... 1. CMP means Current Market Price traded in stock market 2.PE means Price Earnings of that stock 3. P/E ratio = price per share / earnings per share (EPS) Where EPS = earnings/total shares outstanding If you buy a stock at current market price PE of that stock is at 23.5 x means your total investment amount in secondary market amount will earn by your company will take 23.5 years time .... ALL THE BEST BROTHER
Hello prashanth, If you are small investor always go for mutual funds, you can make approx. 10-15% compounded profit in 5-7 years horizon. If you are very keen to invest in stock market then you should keep a time horizon of 15 years and expect a return of 20-25 % yearly if you are LUCKY.
CMP:- Current Market Price PE:- Price Earning I think people give good advice to you, you should learn the basics of stock market then you should enter in it. Otherwise you will get a big financial loss.
