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The Price/Earnings (P/E) ratio is fooling you.

Jun 25, 2024

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Think about investing your hard-earned money based on a number that only shows where a company has been, not where it’s going.


The current P/E ratio reflects past performance, which is not as important as the future performance.


The markets always focus on the future rather than the past.


This is where forward P/E becomes important—it’s not just another number; it’s a look at what’s possible in the coming year.


Forward P/E is current price divided by future earnings in a year.


Forward P/E considers the company’s expected earnings over the next year(s), helping you understand its future potential.


It’s about spotting the opportunities that could turn a good investment into a great one.


Imagine a stock that seems expensive today because of a high current P/E, but forward P/E shows it might be undervalued.


Or think of a stock with a low current P/E that looks cheap, but forward P/E reveals that its earnings might drop in the future.


In India, where the market is always evolving and opportunities are everywhere, can you afford to miss what lies in the future?


Forward P/E helps you see beyond today’s numbers and prepares you for tomorrow’s opportunities.


Don’t let past performance limit your future gains.


In a market as dynamic as India’s, where every day brings new chances, forward P/E guides you to what’s ahead.


Trust in the future, trust in forward P/E, and make sure your investments grow along with India’s bright future.


Because investing is not just about today; it’s about believing in a better tomorrow and taking steps to capitalize on it.

Jun 25, 2024

1 min read

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2

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