How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor

by Prasenjit Paul

For further clarification, let’s consider the example of Yes Bank. During 2010-2014, Yes Bank has a consistent average growth rate of around 38%. During the same period, the stock mostly traded in the P.E band of 6-22.Thus, average P.E becomes 14. With the average earnings growth rate of 38%, PEG ratio will remain below 0.5. PEG = P.E/ Average earnings growth rate PEG = 19/38 =0.5