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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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 Posted: 27/Feb/2008 at 1:57pm |
Oh! I am back to the basics. Changed by previous post.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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johnnybravo
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Joined: 17/Jan/2007
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Posts: 533
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 Posted: 27/Feb/2008 at 2:30pm |
kulmanji, just recollected, when we met, you talked about mcap to profits ratio for L&T and its comparison with FD's - i couldn't get that comparison, can you please throw some moonlight on it?
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Saab Moh Maya hai!
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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 Posted: 27/Feb/2008 at 7:54pm |
Originally posted by johnnybravo
kulmanji, just recollected, when we met, you talked about mcap to profits ratio for L&T and its comparison with FD's - i couldn't get that comparison, can you please throw some moonlight on it?
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Johnybravo Sir, Jab You Met Kulman Sir, why were you discussing so very complicated things.....?????? By the way, Market Cap to Profits, and in case Profits mean Net Profit, is nothing but P/E ratio......!!!!
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johnnybravo
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Joined: 17/Jan/2007
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Posts: 533
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 Posted: 27/Feb/2008 at 8:00pm |
sukhaniji, ofcourse, but what relation can a PE have with returns from FDs? high or low PE its a market perception - nothing to do with practical returns one can get.
Thoda context bhi samajh lo bhaya, mana ki tussi genius ho, tussi genius hi nahi tussi indigenous ho!!
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Saab Moh Maya hai!
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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 Posted: 27/Feb/2008 at 8:10pm |
Originally posted by johnnybravo
sukhaniji, ofcourse, but what relation can a PE have with returns from FDs? high or low PE its a market perception - nothing to do with practical returns one can get.
Thoda context bhi samajh lo bhaya, mana ki tussi genius ho, tussi genius hi nahi tussi indigenous ho!!
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Now thats a different matter......but in my humble opinion, Kulman Sir se milne ke baad yeh sab baat......??????? Thats why I gave that post.
Now, Mcap to profits does have a linkage with FD returns. The inverse of P/E is E/P which is what gets compared with the FD returns. Some quants trade on the basis of these 2 yield differences.....
Edited by Vivek Sukhani - 27/Feb/2008 at 8:11pm
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johnnybravo
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 Posted: 27/Feb/2008 at 8:17pm |
now we indeed had a talk about a lot of other things but those things lie outside the purview or rather the mandate of TED and kulman has an image of being a sajjan on this forum.
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Saab Moh Maya hai!
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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 Posted: 27/Feb/2008 at 8:23pm |
Originally posted by johnnybravo
now we indeed had a talk about a lot of other things but those things lie outside the purview or rather the mandate of TED and kulman has an image of being a sajjan on this forum.
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Thats much much better.....wahi mein soch raha tha that Kulman Sir talking about such silly things as P/E etc etc.....
Thanks for clarification.....
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kulman
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Joined: 02/Sep/2006
Location: India
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Posts: 9319
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 Posted: 27/Feb/2008 at 8:47pm |
Originally posted by Vivek Sukhani
Thats much much better.....wahi mein soch raha tha that Kulman Sir talking about such silly things as P/E etc etc.....
Thanks for clarification.....
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The last time I talked about PE was while asking directions to the loo in a restaurant.
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Life can only be understood backwards—but it must be lived forwards
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