{"id":550,"date":"2024-01-03T07:49:19","date_gmt":"2024-01-03T07:49:19","guid":{"rendered":"https:\/\/equitywise.in\/?p=550"},"modified":"2024-01-03T08:01:07","modified_gmt":"2024-01-03T08:01:07","slug":"important-ratio-for-result-season","status":"publish","type":"post","link":"https:\/\/equitywise.in\/index.php\/2024\/01\/03\/important-ratio-for-result-season\/","title":{"rendered":"Important ratio for result season."},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"550\" class=\"elementor elementor-550\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6df5d1b6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6df5d1b6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6127265f\" data-id=\"6127265f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-271bc7d7 elementor-widget elementor-widget-text-editor\" data-id=\"271bc7d7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.12.0 - 29-03-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<!-- wp:paragraph {\"fontSize\":\"large\"} -->\n<p class=\"has-large-font-size\">Blog by SEBI Registered Research Analyst &#8211; Shubham Rajendra Jain. Registration number- INH000013554.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} -->\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">In this blog, we will look into ratios more relevant than your P\/E ratio for this result season.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">This ratio is a derivative of PE ratio and is more relevant right now for comparison, to know if the result of the company is better then expected or not.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\">\u00a0<\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">PEG RATIO<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\">\u00a0<\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">PEG ratio formula is [ (P\/E)\/Annual EPS growth ]<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">Which means if EPS is growing by 12% and P\/E ratio is also 12, your PEG ratio would be 1. We just have to keep in mind the lower the PEG ratio the better, as you want the companies earning to grow faster than the P\/E.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">P\/E ratio shows the expected growth rate discounted in the price. So for further increase in the share price, the EPS has to be higher than P\/E. So your PEG Ratio has to be less then one. With this you can easily understand if the share performed better than market expectations or not.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">So, this result season use this ratio in practice to know the results impact on the share.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">You can also put the ratio on screener.in and see the impact on the shares in the screen.<\/span><\/p>\n<p><span style=\"color: #000000;\"><!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"x-large\"} --><\/span><\/p>\n<p class=\"has-x-large-font-size\"><span style=\"color: #000000;\">This post is for learning purpose and is not giving any recommendation of buy\/sell.<\/span><\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Blog by SEBI Registered Research Analyst &#8211; Shubham Rajendra Jain. Registration number- INH000013554. In this blog, we will look into ratios more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/posts\/550"}],"collection":[{"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/comments?post=550"}],"version-history":[{"count":8,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/posts\/550\/revisions"}],"predecessor-version":[{"id":559,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/posts\/550\/revisions\/559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/media\/537"}],"wp:attachment":[{"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/media?parent=550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/categories?post=550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitywise.in\/index.php\/wp-json\/wp\/v2\/tags?post=550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}