PE of Food Processing sector companies (As of 2nd July 2021)

The Food processing companies in CSE under new classification are not properly classified and not reflecting the true sector PE. Therefore I have selected 12 food processing stocks that are matching with the business in principle and calculated the "Cluster PE" based on the same company list to compare the relative (over) / under valuation of the different stocks based on the calculated cluster PE. 

The below chart demonstrate the calculation mechanism of the said cluster PE for food processing companies.



By using the above showed cluster PE I have calculated the individual PEs of 12 finance companies as of 2nd July based on trailing 4 quarter EPS basis. Then I have compared the PEs with the established cluster PE and list down the undervalued shares based on the highest degree of undervaluation as per below chart.


I believe the above calculation will help you to identify the relative valuations of each finance sector stock and make it easy to take informed decisions.


Thanks


Comments

  1. Especia associate llpMarch 25, 2022 at 5:24 AM

    Thanks For Sharing. Especia Associates provides Equity Valuation Services. Especia is one of the leading Valuation Firms in India & has done more than 250 Valuations in India for various transactions. We have a great team who understands each & every industry & accordingly plans the overall approach of the Valuation assignment. We cater to all major industries including start-ups as well as Corporates for all their Valuation Services requirements in India. if you need Equity Valuation Services call at 9310165114 or visit us Equity Valuation Services

    ReplyDelete
  2. HisabkitabOctober 2, 2023 at 11:52 PM

    Thanks For Sharing. Our TDS return filing in mumbai are designed to simplify this intricate process, allowing you to focus on your core business activities while we handle the intricacies of tax compliance. Whether you're a business owner, a freelancer, or an individual taxpayer, our expert team is here to assist you every step of the way.

    ReplyDelete

Post a Comment

Popular posts from this blog

Plantation Sector Composite Analysis

Image
 Plantation sector companies demonstrated huge recovery in Q1 2021 compared to Q1 2020. Most of the companies have posted very good earnings during the quarter aided by favorable prices as well as depreciating Rupee. The sector has to face-up with several challenges including wage hike and chemical fertilizer shortages but still the profitability of Q2 2021 looks like very good. Therefore I believe investors still have good investment opportunities in the sector, at least in short-term, if they can pick the right stock. In this light I have compared 13 plantation stocks and ranked them based on financial and market parameters and ranked them in a rating scale of 1 to 13 where 1 being the best and 13 being the worse.  Below is the financial parameter summary for these 13 stocks based on Q1 2021 quarter report. Earnings based figures have been annualized to reflect the full year view.  Based on above I have ranked companies under each of the seven financial parameters and b...
Read more

Composite Analysis of Diversified Conglomerates and Investment Ranking - Financial ratio analysis & Market ratio analysis

Image
Diversified Conglomerates in CSE have been classified under different fields therefore investors can't really compare each other to understand which carries the better value. I have conducted an analysis using financial ratios as well as market ratios to rank each diversified company on their merits using a rating scale of 1-10 where 1 being the best and 10 being the worse. Using this analysis I have ranked 10 diversified conglomerates listed in CSE and ranked accordingly. The financial ratios used in this analysis are;, a) Return on Equity (ROE) - Profit attributable to shareholders / Equity balance b) Quick ratio - (Current assets - inventory) / Current liabilities c) Debtor turnover days - Trade payable balance / Sales revenue x 365 d) Gearing ratio - Total interest bearing borrowings / (Total interest bearing borrowings + Equity) e) Interest cover - Operating profit / Net finance cost f) OCF per share - Net cash generated from operations / No of shares in issue The market ratio...
Read more

PE of Diversified Finance sector companies (As of 30th June 2021)

Image
The Diversified Finance sector in CSE under new classification is not reflecting the true sector PE due to the inclusion of number of non relevant companies. Therefore I have selected 19 finance stocks that are matching with the business in principle and calculated the "Cluster PE" based on the same company list to compare the relative (over) / under valuation of the different stocks based on the calculated cluster PE.  The below chart demonstrate the calculation mechanism of the said cluster PE for diversified finance companies. By using the above showed cluster PE I have calculated the individual PEs of 16 finance companies as of 30th June based on trailing 4 quarter EPS basis. Then I have compared the PEs with the established cluster PE and list down the undervalued shares based on the highest degree of undervaluation as per below chart. I believe the above calculation will help you to identify the relative valuations of each finance sector stock and make it easy to take i...
Read more