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

by Prasenjit Paul

current valuation (P.E and P.B ratio) is less than the last five years average and the current P.E is less than half of the last three years average profit growth (PEG ratio < 0.5), then we can conclude that the company is undervalued and can become a great investment bet.  If current valuation (P.E and P.B ratio) hovers around the average of the last five years valuation and current P.E is less than or equal to last three years average profit growth (PEG <= 1), then we can conclude that the company is reasonably valued.  If the current valuation is either in the lowest or highest range of last five years range, then it requires serious attention.  If current P.E is double of the last three years average profit growth