With the ‘Buy or Sell Zone’ tool, you can check if a stock typically trades above or below its current PE valuation, both on a standalone and consolidated basis, over a historical date range. The PE ratio, a measure of a company’s share price relative to its earnings per share, indicates whether a stock is considered expensive or cheap.
If a stock is trading above its historical PE levels, it is costlier than usual. On the other hand, trading below historical PE levels indicates the stock is cheaper than it usually is.
To use this tool, input the stock's name and select a date range. You can choose between Price to Earnings or Price to Book Value to generate the report. Price to book value compares a stock's market value with its book value.
For example, let’s analyze Apple Inc from 01/03/2022 to 19/03/2024, with Price to Earnings as the parameter. The result shows that the stock is in the PE Neutral Zone, as it historically trades at its current PE level.
The report shows the stock’s Restated and Originally reported PE performance and its current PE ‘Buy or Sell Zone’.
The data also has the P/E range vs the percentage of days traded within or below that range. It also shows the median, average, highest, and lowest P/E values.
You can also find pre-built screeners for ‘Buy or Sell Zone’ at the bottom of the page. They will help you track stocks that are in the PE Buy Zone, PE Sell Zone, and more.