10 best undervalued companies
Kirubanandam Marimuthu
Andhrajyothy (Telugu daily) published a list of good company stocks
with low PEG ratio (price earnings to growth ratio) which is very
useful information to find about great shares for investment purpose.
Legendary investor Peter Lynch gave so much importance to this PEG
ratio as it includes future growth prospects unlike PE ratio. It gives
an idea about undervalued company shares.
What is PEG ratio?
PEG ratio is the ratio between price earnings ratio to annual EPS
growth (estimates). Low PEG means stock is undervalued and PEG ratio
is better indicator than P/E ratio. Biggest problem with PEG ratio is
here growth numbers are projected ones.
PEG >1 means overvalued company.
PEG=1 means reasonable valuations.
PEG<1 means stock price is undervalued.
10 Good stocks with low PEG ratio:
1. Welspun Gujarat- 0.26. Very good stock for long term.
2. Oriental bank of Commerce- 0.3. Waiting for better times.
3. Dena bank- 0.67
4. IVRCL Infra- 0.77. Good results but in bad sector.
5. Sun Pharma-0.83. Good domestic consumption story.
6. Biocon- 0.93
7. Bharti Airtel- 0.95. Sleeping giant.
8. Larsen and Toubro (L&T) - 0.99. Invest with 2-3 years duration.
9. Divis Labs: 1.11. Safest stock for 3-4 years.
10. JP Associates- 1.13. More intrinsic value but in bad sectors.
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Kiruba
Mob : + 0044 (0) 7895929953
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Kiruba
Mob : + 0044 (0) 7895929953