BUY Signal : Once PE goes below 14.
When NIFTY PE goes below level of 14, start accumulating the stocks and invest your money in 4-5 installment over some months. Make sure that markets are going up and down and moving in a range. If PE goes below 11, its a must BUY!!
SELL Signal : Once PE crosses above 22.
Part book the profit once NIFTY PE crosses above 22, PE crossing above 22 does not mean markets has to fall, its only an indication that markets may be overbought and now smart people will start selling there shares to mad public. If PE crosses above 25, its a must SELL!!
What Does Price-To-Book Ratio - P/B Ratio Mean?
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
What Does Dividend Yield Mean?
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.