Learn to Invest with Vivek Bajaj, where he will explain how to evaluate stocks using key valuation metrics like PE and PEG ratios. Watch the complete video to understand intrinsic and speculative PE, forward valuations, and how sales growth and profitability impact stock prices and investments. Download the Excel spreadsheet to try it on your own. 

What You Will Learn?

Vivek Bajaj discusses the use of Price to Earnings (PE) and Price to Earnings to Growth (PEG) ratios to identify the value of stocks for fundamental investors. He explains that PE ratios are calculated using a company's current market capitalization and profit after tax (PAT), while PEG ratios are derived by dividing PE ratios by the growth rate of PAT.

He also demonstrates how intrinsic PE and speculative PE can impact potential stock appreciation or depreciation by assuming different exit PE multiples and considering sales growth and PAT margin expansion. He emphasizes the importance of understanding market conditions and management commentary when evaluating a stock's PE and PEG ratios and encourages viewers to practice using the provided exercise sheet. Overall, PE and PEG ratios are crucial tools for fundamental investors to predict future earnings and growth.