Market should correct the prices of following companies for healthy ASI

stockanalytic

stockanalytic

Manager - Equity Analytics

Posts : 114
Equity Stars : 3854
Reputation : 20
Join date : 2011-03-29
Age : 37

i selected high capitalization companies (1st 50 companies), and analysed P/E value. following companies having higher P/E value than market P/E ( today 16.27).
CLND, CARG, HAYL:SL, CTHR, BUKI, GREG, KHL, CDIC, CARS, NEST, TRAN, CINS, AHPL, SPEN, SINS, JKH, SLTL, HHL

rijayasooriya

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
Equity Stars : 5651
Reputation : 134
Join date : 2011-05-25
Location : Matara

It is better to compare it with sector PER.

m2_yapa

m2_yapa

Senior Manager - Equity Analytics

Posts : 432
Equity Stars : 4128
Reputation : 30
Join date : 2011-06-01
Location : Colombo

But can you remove manipulators/traders and inside dealers...nope..CSE is CSE...

Quibit

Quibit

Senior Vice President - Equity Analytics

Posts : 2633
Equity Stars : 10061
Reputation : 379
Join date : 2010-05-08

What do you mean by correction? Are you saying that these shares are overvalued coz it has high PER. If so to be attractive these share prices should come down. If share prices come down, how can it will improve the ASI.

I am confused!

suja

suja

Senior Manager - Equity Analytics

Posts : 338
Equity Stars : 4052
Reputation : 14
Join date : 2011-01-27

Some of the companies you have highlighted will trade at higher PE if we kike or not Nestle - Most of the products are in monopoly territory and also shareholding is very strict and public holding is low. Cars will always be a growth company and will trade at a premium etc.

stockanalytic

stockanalytic

Manager - Equity Analytics

Posts : 114
Equity Stars : 3854
Reputation : 20
Join date : 2011-03-29
Age : 37

@Quibit wrote:What do you mean by correction? Are you saying that these shares are overvalued coz it has high PER. If so to be attractive these share prices should come down. If share prices come down, how can it will improve the ASI.

I am confused!

All are expecting ASI 6000-6200 to stabilize the market and attract foreigners. Mainly high capitalized companies are determine the ASI value. But, undervalued high capitalized company prices are coming down further and further than those mentioned shares. So, we should aware when selling the shares.

kama

kama

Manager - Equity Analytics

Posts : 115
Equity Stars : 3662
Reputation : 0
Join date : 2011-07-25

@stockanalytic wrote:i selected high capitalization companies (1st 50 companies), and analysed P/E value. following companies having higher P/E value than market P/E ( today 16.27).
CLND, CARG, HAYL:SL, CTHR, BUKI, GREG, KHL, CDIC, CARS, NEST, TRAN, CINS, AHPL, SPEN, SINS, JKH, SLTL, HHL

Cars Annualised PE is about 13 for this year...
BTW. Please highlight counters whose PER is more than 20

Sponsored content

Latest topics

Market should correct the prices of following companies for healthy ASI

1 Market should correct the prices of following companies for healthy ASI Thu Oct 27, 2011 5:44 pm

stockanalytic

2 Re: Market should correct the prices of following companies for healthy ASI Thu Oct 27, 2011 8:10 pm

rijayasooriya

3 Re: Market should correct the prices of following companies for healthy ASI Thu Oct 27, 2011 8:27 pm

m2_yapa

4 Re: Market should correct the prices of following companies for healthy ASI Fri Oct 28, 2011 4:05 am

Quibit

5 Re: Market should correct the prices of following companies for healthy ASI Fri Oct 28, 2011 8:55 am

suja

6 Re: Market should correct the prices of following companies for healthy ASI Fri Oct 28, 2011 10:34 am

stockanalytic

7 Re: Market should correct the prices of following companies for healthy ASI Fri Oct 28, 2011 10:57 am

kama

8 Re: Market should correct the prices of following companies for healthy ASI

Sponsored content