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barla
Senior Member
Joined: 15/Sep/2008
Location: India
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Posts: 779
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   Topic: Sensex PE - Buy sell or hold indication?
Posted: 07/Feb/2011 at 12:45pm |
Snesex PE on close of Friday 4th February, 2011 was 19.78.
Index closing at 18054.
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ash7979
Senior Member
Joined: 19/May/2010
Location: India
Online Status: Offline
Posts: 324
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Posted: 07/Feb/2011 at 4:35pm |
Originally posted by barla
Snesex PE on close of Friday 4th February, 2011 was 19.78.
Index closing at 18054.
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If
you are looking at the BSE-Sensex and its current P/E of 19.8 times, it
is still trading around 9% higher than its ten-year average P/E of 18.2
times. So that looks reasonable but not cheap. But when you extend your
analysis to include more than the top 30 stocks, some value seems to be
appearing there...
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Fear can hold you prisoner. Hope can set you free....
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Jaishrikrishna
Senior Member
Joined: 06/Sep/2008
Location: India
Online Status: Offline
Posts: 1132
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Posted: 07/Feb/2011 at 5:55pm |
For sensex related PE issues i would read and refer this:
CLICK HERE
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Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril.
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abhishekbasu
Senior Member
Joined: 07/Sep/2008
Location: India
Online Status: Offline
Posts: 335
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Posted: 07/Feb/2011 at 7:28pm |
Originally posted by ash7979
Originally posted by barla
Snesex PE on close of Friday 4th February, 2011 was 19.78.
Index closing at 18054.
Link
|
If
you are looking at the BSE-Sensex and its current P/E of 19.8 times, it
is still trading around 9% higher than its ten-year average P/E of 18.2
times. So that looks reasonable but not cheap. But when you extend your
analysis to include more than the top 30 stocks, some value seems to be
appearing there...
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It would be good if you put your own thoughts here and not copy-paste from some free newsletter! In case you feel pressed do that anyways, it would be nice to acknowledge the source 
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barla
Senior Member
Joined: 15/Sep/2008
Location: India
Online Status: Offline
Posts: 779
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Posted: 07/Feb/2011 at 7:35pm |
Basuji: The link itself is of Bombay stock exchange. I have cut paste the same.
I keep reading these earning estimates everywhere especially of Samir Arora. Then I went about trying to find out an authentic source of current PE. I got that on the BSE website itself.
So I thought why not get the BSE closing PE put up at regualr intervals, then each one form his own opinion.
I have serious doubts on Samir Aroras projections. Either he is being over optimistic or the BSE website numbers are wrong.
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abhishekbasu
Senior Member
Joined: 07/Sep/2008
Location: India
Online Status: Offline
Posts: 335
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Posted: 07/Feb/2011 at 7:54pm |
Originally posted by barla
Basuji: The link itself is of Bombay stock exchange. I have cut paste the same.
I keep reading these earning estimates everywhere especially of Samir Arora. Then I went about trying to find out an authentic source of current PE. I got that on the BSE website itself.
So I thought why not get the BSE closing PE put up at regular intervals, then each one form his own opinion.
I have serious doubts on Samir Aroras projections. Either he is being over optimistic or the BSE website numbers are wrong.
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@Barla: I was not commenting about your post, but the one made by ash7979. Personally, I would listen to what Samir Arora has to say very carefully. He is someone who has a very very perceptive mind and a keen understanding of macro trends. You may agree or disagree with his views, but it is always worth listening to.
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barla
Senior Member
Joined: 15/Sep/2008
Location: India
Online Status: Offline
Posts: 779
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Posted: 07/Feb/2011 at 2:17am |
Samir Arora says markets are 15 times March 2012 earnings.
So at a sensex of 18300 and 15 times would mean an EPS of 1220 March 2012.
If official sensex is 19.7 then EPS today at sensex of 18300 would be 928.
Difference between 928 and 1220 is about 35%, whihc has to be the sensex EPS growth in the next 15 months.
Samir Arora says this should be possible.
Edited by barla - 07/Feb/2011 at 2:21am
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Ravenrage
Senior Member
Joined: 21/Jun/2010
Location: India
Online Status: Offline
Posts: 859
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Posted: 07/Feb/2011 at 7:12am |
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There seems to be some mismatch .
Edited by Ravenrage - 07/Feb/2011 at 7:15am
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