Just watched Lecture 1 of Stock Market Fundamentals

I used to think low P/E means a stock is cheap and a good buy. But now I’m realizing it’s not that simple.

P/E only tells us how much we’re paying for 1 rupee of earnings

--> A low P/E can be undervalued… or weak.

--> A high P/E can be expensive… or strong growth.

What’s making sense now

• Compare P/E within the same sector

• Focus on growth (EPS)

• Check past trends

• Don’t ignore fundamentals

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Just watched Lecture 1 of Stock Market Fundamentals

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