PEG ratio, kind of answers this question.
Let’s suppose the historical profit growth is also expected in the future (assuming no dilution) too i.e. 20%. PE ratio is 20. PEG ratio comes out to be 1 for both companies
Given that, one is a 200cr company and other is 15,000 cr. Taking all else constant, I would choose 15,000 cr company (using a proxy that bigger mcap firms are safer bets).
Note: This is for academic purposes. Don’t invest based on a single metric.
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