Pe can’t be looked at in isolation. It should always be looked with the E trajectory.
Example: Varun beverages, starting Pe was 60 times when I looked at it. Post results it fell to 48x. Ttm multiples should only be looked at with your view on the E growth.
Sometimes there are one offs like impairment which impact the Earnings part temporarily. You have to normalise for that too.
On the other hand, sometimes there could be steep jump in earnings due to capex commercialising. Deepak nitrites Pe went to 70x +. Post phenol capex it fell to 10x.
Pe is useless if one doesn’t have a view on earnings
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