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Valuations of Steel companies variance

Discussion in 'Fundamental Analysis' started by naveen1241, Oct 25, 2012.

  1. naveen1241

    naveen1241 Responder

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    Why does Jindal Steel trade at a high PE compared to its peers like Tata Steel ?

    For long term investments, is it worth looking at the book value of stocks or does it misguide ?

    Thanks
    Naveen
     
    naveen1241, Oct 25, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    PE can misguide and any stock which has good track record deserves more PE. Tata steel has inconsistent earnings because of world wide operations and forex fluctuations.
     
    shabbir, Oct 25, 2012
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