1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

What is EPS & How I Use it Differently to Invest in High PE High Growth Stocks?

Discussion in 'Technical Analysis' started by shabbir, Apr 14, 2019.

  1. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Everyone knows EPS is earnings per share but how to use it effectively to invest in stocks? What if I say Page Industries is one of the cheaper stock to invest into?

    Continue reading...
     
    chaitanya_mella and nirajshah like this.
  2. nirajshah

    nirajshah Champion

    Joined:
    Aug 17, 2016
    Messages:
    546
    Likes Received:
    302
    chaitanya_mella likes this.
  3. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Thanks
     
    nirajshah likes this.
  4. chaitanya_mella

    chaitanya_mella Contributor

    Joined:
    May 20, 2017
    Messages:
    141
    Likes Received:
    109
    Natco Pharma threw up an interesting result. Assuming the same growth rate, it would take just 15 years.


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    nirajshah and shabbir like this.
  5. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    That will be tough to achieve the same growth rate as it is quite high due to very high growth rate in the last couple of years. Let's see as it is possible for few ears for sure.
     
    nirajshah and chaitanya_mella like this.
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Just to add I assume 50% which was past 5 years EPS growth.

    I see you have done the calculation at 18% growth rate for 15 years and it is quite easily doable. Even close to 20% doable for few years for sure.
     
    nirajshah and chaitanya_mella like this.