Search
+
    Invest with Confidence. Lead with Insights.
    • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

    Quantitative investing; difference in trailing P/E and forward P/E in these 5 stocks indicates potential upside up to 43%

    Synopsis

    We have also looked at the CAGR of these stocks for a 10-year time period. Stocks with the CAGR of more than 15% form part of this selected list of stocks. While the past track record of stock movement is no guarantee of future returns, capital gains in markets are about probability. So, looking at the compounded annualized growth rate provides a valid sense about a stock to an investor.

    There are multiple ways to select stocks on quantitative parameters, Some based on financial parameters and others on valuation parameters. We looked at the stocks where the differential in two most used PE ratio parameters, forward and trailing P/E ratio is indicating a potential increase in earnings. When used alone Price earning valuation metric may not be a good indicator however its efficacy increases when compared with its last 5 years
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT
    ET

    Uh-oh! This is an exclusive story available for selected readers only.

    Worry not. You’re just a step away.

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

    The Economic Times