Iron Scrap Price Jalna 26300
Iron Scrap Price Kanpur 23000
Iron Scrap Price Mujaffarnagar 26200
Iron Scrap Price Hyderabad 23500
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This analysis is intended to introduce important early concepts to people who are starting to invest and want to begin learning the link between Indian Metals and Ferro Alloys Limited (NSE:IMFA)’s fundamentals and stock market performance. Indian Metals and Ferro Alloys Limited (NSE:IMFA) trades with a trailing P/E of 4.4x, which is lower than the industry average of 14.4x. While IMFA might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. Today, I will explain what the P/E ratio is as well as what you should look out for when using it. The P/E ratio is one of many ratios used in relative valuation. By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. We preferably want to compare the stock’s P/E ratio to the average of companies that have similar features to IMFA, such as capital structure and profitability. A quick method of creating a peer group is to use companies in the same industry, which is what I will do. Since it is expected that similar companies have similar P/E ratios, we can come to some conclusions about the stock if the ratios are different. IMFA’s P/E of 4.4x is lower than its industry peers (14.4x), which implies that each dollar of IMFA’s earnings is being undervalued by investors. Therefore, according to this analysis, IMFA is an under-priced stock. Source-
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