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Buffet Sir, could you kindly explain about this two mode Plz? thank you for your time

Buffet jee , can you please explain the 2 ways you mentioned ?

Buffet jee , can you please explain the 2 ways you mentioned ?

Thanks A lot my all good friends for your valuable suggestion. but i have one question ?

Standard Chartered Bank Current Market Price is 1800/- and EPS 60/- then its Pe Ratio is 30. That's mean Its current market value is overvalue ??

Agree with Freak Money Jee. But its simple and miss lead investor while making judgement. THis PE dont see past. If some companies are in continous loss for several years and in recent or current year if this company make profit then its PE will be positive. But in this kind of scenario we cant judge company only by Seeing PE.

So there are different valuation model of stock. They are

1. Dividend Discount Model
2. Discount Cash Flow Model

I think this two model are very simple to calculate exact value of stock and compare with market price.

Ds3share ji, Price Earning (P/E) Ratio of a company is the best way to know if the price of share is under priced or overpriced.

If the P/E Ratio is less than 10 times then the share price is considered to be under priced and volatile as well.

If the P/E Ratio is more than 20 times then the share price is considered to be over priced.

If the P/E Ratio is the range of the 10-20 times then the share price is considered to be fairly priced.

The share price of a company also depends on the demand and supply of shares in the market.

Its depend upon the buy/seller's demand and supply........

How to Know (Calculate) Company Low Value or Over Value