The P/E ratio, or Price-to-Earnings ratio, is a very commonly tracked and important financial ratio, which tracks how much the investors are willing to pay for each rupee of a company’s earnings. The formula for PE ratios is the current share price divided by the EPS.
The general use of the ratio is to find out if the Stock is overvalued or undervalued; however, factors like debt, future growth potential, and sector difference should be taken into consideration before judging a stock by its PE ratio.
When the PE ratio of a company is around the same level for a long period of time, it suggests that the Business is already mature, the company is showing stable earnings, the stock is trading at a fair valuation, and the market participants don’t expect any major Rerating or de-rating for the stock.
Here is the list of Nifty 50 Stocks trading near their Pre Covid Crash PE Levels:
1. RELIANCE INDUSTRIES
Reliance Industries is currently trading at a P/E ratio of around 24.90, which is nearly identical to its pre-COVID crash P/E level of 23. The Company is one of India’s largest and most diversified conglomerates, It operates in several business verticals like Energy, Petrochemicals, retail, digital services, New Energy, Retail, and Media & Entertainment
2. TATA CONSULTANCY SERVICES
Tata Consultancy Services is currently trading at a P/E ratio of around 24.60, which is nearly identical to its pre-COVID crash P/E level of 25. Tata Consultancy Services is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence, and customer service.
3. INFOSYS
Infosys is currently trading at a P/E ratio of around 21.30, which is nearly identical to its pre-COVID crash P/E level of 21. Infosys is a global leader in next-generation digital services and consulting. We enable clients in more than 50 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey.
Written By Abhishek Das
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