I have noticed that manufacturers who produce high quality products can have a price/earnings (P/E) ratio of over 90. Examples are Gillette and Page Industries (Page touched 100 PE earlier this year.)
I have chosen 16 P/E as my price of entry as it is the average of the DOW over the last 100 years and it is rare for a company to discount below P/E 16 (companies like KRBL and Finolex cables were around P/E 32 but are now being rerated to P/E 16).
I have invested in Venky's because their frozen foods have high ratings online and the P/E ratio is around 16.
I have four more companies on my list which have high quality products and are nearing a P/E of 16:
- Bajaj Auto
- Finolex Cables
- Hero Motocorp
- KRBL
Could someone tell me of other companies that have high quality products and a P/E of around 16?
I have chosen 16 P/E as my price of entry as it is the average of the DOW over the last 100 years and it is rare for a company to discount below P/E 16 (companies like KRBL and Finolex cables were around P/E 32 but are now being rerated to P/E 16).
I have invested in Venky's because their frozen foods have high ratings online and the P/E ratio is around 16.
I have four more companies on my list which have high quality products and are nearing a P/E of 16:
- Bajaj Auto
- Finolex Cables
- Hero Motocorp
- KRBL
Could someone tell me of other companies that have high quality products and a P/E of around 16?