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What They Don't Tell You About High P/E Stocks
29 Mar 2023, 07:35 AM IST
Price-to-equity multiples are deceptively damaging for anyone seeking long-term gains from equity investments. If we take the 21 stocks, which have had consistently “high P/Es” over the past 13 years, their median compounded returns have been 17% per annum (vs the Nifty’s total return of 11% p.a.). Furthermore, if we were to look at a subset of these high P/E companies (13 out of 21), which were undervalued by around 50%—based on our...
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