Since I am new to stock market. I need guidance for my portfolio.
As well as I want understandings what is good PE value and Graham value.
My stock as below
JBM Auto 60 @545.63
Icici bank 265 @246
Kanoria chem 250 @91.11
HCC 500 @ 40
Delta corp 60 @ 290
Indraprastha medical 250 @ 53
Dmart 50 @ 616
Dear @munjalmehta2003, This is an incomplete post. You must include entry price and rationale for your investment in these businesses for anyone to make any meaningful suggestion .
Price-Earnings multiple is a relative valuation which is used in comparison to industry P/E or P/E of peer companies. Even a comparison across sectors can be made using P/E. Also there are several reason why a company must command a higher P/E than others in the same business. So for a better business, investor must be willing to pay a higher price to earnings.
Graham number is a formula devised by the legendary Benjamin Graham which calculates fair price of a stock at that point of time, below which the stock is considered undervalued. The basis is to pay not more than PBxPE of 22.5 for a business. However, there are limitations to Graham’s formula in current times, which I would suggest you to further read about before using it.