Compare NIFTY with NIFTY P/E, P/B, Dividend Yield on 12 years chart 1999 to 2011

[tomjerry]

Compare NIFTY with NIFTY P/E, P/B, Dividend Yield on 12 years chart 1999 to 2011(up to 30 December 2011):

Following is a Picture of Chart:
(Data source: NSE Website)

 

[timepass]

Compare NIFTY with NIFTY P/E, P/B, Dividend Yield on 12 years chart 1999 to 2011(up to 30 December 2011):

Following is a Picture of Chart:
(Data source: NSE Website)

Is that all What conclusions does one draw from this ??

BTW, what is the NSE link for Nifty dividend data ? I would like to record it on a daily basis in the Bollingerbands thread.

 

[tomjerry]

Is that all What conclusions does one draw from this ??

BTW, what is the NSE link for Nifty dividend data ? I would like to record it on a daily basis in the Bollingerbands thread.

Here is the link to get latest Nifty PE, PB, Div. Yield Data: http://www.nseindia.com/content/indices/ind_pepbyield.htm

According to this Limited Data of Chart from 1-Jan-1999 to 31-Dec-2011, here is my conclusion:

This chart is more important for Long Term Investors to make a decision of Buy or Sell. Time bound Traders can also get hint of Oversold or Overbought Nifty from this chart which is almost equal to Nifty Trend Change hint!

Chart is showing Nifty Index on Right Scale and PE (Price-to-Earnings ratio), PB (Price-to-Book ratio), Div. Yield (Dividend Yield) on left scale.

Long Term Investor (3 to 5 years time) can break their Fixed Deposits and Buy Stocks at the best bargain when Div. Yield crosses over PB to get Maximum Return from Stock Market. (Check in chart that Nifty is Lowest when DY crosses PB.). OR Buy at PE 12 and Sell at PE 25.

Extra Long Term Investor (7 to 25 years time) can keep adding stocks in their portfolio whenever PE comes below 13.

All these PE, PB, DY are for Nifty Index and not for particular stock.

If Investor is not sure which stock to Buy according to this Nifty Data then Investor can Buy NIFTYBEES which is going up and down with Nifty Index.

 

[aryan.]

To see the 2012 nifty p/e, p/b values check out NSE Nifty P/E, P/B, Dividend Yield Yearly Chart

 

[jamit_05]

I agree that Investing btw of SIP is a very important aspect of financial growth over the long term !! And understanding levels of PE ratio majorly helps.

 

[jamit_05]

Each established company has its own range of PE ratio.

For ex. Siemens and Bhel, although from same sector have a different range of their own PE. Therefore, before purchasing a company for long term investment one would best positioned if researches the last 10 years range for individual stock.