Thursday, October 30, 2014

P/E - Markets - Potato, Tomato, Sensex And Nifty - PE Variations And Correlations With Returns

Prices today (Jan 2011)of :
  1. Potato: Rs 55/Kg
  2. Tomato: Rs 24/Kg
  3. Sensex (P/E): 18.55 (note that values for Dividend Yield, P/E etc given for a year, month etc are average values for the period and not the closing values for the period) and latest value here (without history).
  4. Nifty (P/E): 21.16. 

There is more than a 10% variation in the prices of the two indices. Hmmm.

Well tomato at another shop is Rs20/kg. There is more than a 10% difference in the prices of tomato also.

As on 2015 Jan 22:

P/E for Sensex = 19.7, That for Nifty = 22.21 (about 10% difference)
Tomato and Potato prices are about the same as mentioned above.

As on 12th Oct 2015:

Stocks that are likely to enter Sensex in the next decade: https://www.valueresearchonline.com/story/h2_storyview.asp?str=28987

3 year returns from equity correlated with P/E: http://craytheon.com/charts/nifty_pe_ratio_pb_value_dividend_yield_chart.php : 




P/E analysis for NIFTY: www.stableinvestor.com/2015/03/PE-Ratio-Analysis-India-in-2015.html and https://www.stableinvestor.com/2017/03/nifty-pe-ratio-analysis-2017.html


17 year returns of Sensex: http://www.moneycontrol.com/news/business/markets-business/sensex-rises-5x-in-17-yrs-dont-pull-out-when-you-can-get-multibagger-returns-2302991.html


A Sensex historical P/E chart from 2008 to 2017 is given here: https://www.equitymaster.com/5minWrapUp/charts/index.asp?date=04/27/2017&story=1&title=Ten-Year-Sensex-PE


Additional reading:

  1. http://vbala99.blogspot.com/2015/07/interesting-mutual-fund.html
  2. Sensex data in the year 2008: http://bse-2001-2010.blogspot.in/p/bse-sensex-historical-prices-in-year.html
  3. http://vbala99.blogspot.com/2011/01/pe-ratio-for-stock-market-index.html
  4. http://www.fundsindia.com//select-funds
  5. http://www.moneycontrol.com/mutual-funds/compare-funds/All
  6. http://businesstoday.intoday.in/story/how-to-choose-the-best-mutual-fund-for-your-portfolio/1/15779.html
  7. http://www.investing-in-mutual-funds.com/standard-deviation.html
  8. http://www.morningstar.in/mutualfunds/f0gbr06rc2/tata-balanced-fund-growth/risk-ratings.aspx
  9. https://m.economictimes.com/markets/stocks/news/sensex-pe-jumps-16-in-a-day/articleshow/68162388.cms Sensex PE ratio jumps from 23 to 26 in a single day on account of Tata Motors' loss

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