These 7 stocks, trading below 5-year average P/E, have soared over 50% in FY25
- Posted on January 7, 2025
- By Business News Today
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These 7 stocks, trading below 5-year average P/E, have soared over 50% in FY25
We analysed stocks with current trailing twelve months (TTM) P/E ratios below their 5-year average P/E. We excluded companies that reported a net loss in any of the last five fiscal years and focused on those with a market capitalization of over Rs 5,000 crore. This resulted in around 98 stocks passing the initial filter. We then narrowed the list further to include only companies showing momentum, with at least a 50% price return in FY25 to date. According to ACE Equity data, seven stocks met these criteria. (Data Source: ACE Equity)The price-to-earnings (P/E) is the most widely used valuation metric and plays a pivotal role in the stock screening process. The P/E ratio relates a company's share price to its earnings per share. However, investors should not consider the PE ratio as the only indicator to calculate market valuation but should look at multiple factors and ratios while picking the stock. Take a look. Momentum Picks