Saturday, February 16, 2008

Drivers of stock prices - p/e expansion vs eps expansion

the chart depicts indexed movement in the P/E and the EPS of NSE's Nifty is quite a useful chart to monitor...

1 comment:

Deepak Shenoy said...

Interesting chart. You may want to plot the EPS on a log chart as the EPS and PE are not directly comparable - as P/E is a derivative and EPS is a value.

Also note that prior to 2004 December the Nifty calculations on the EPS and PE were totally off and they fixed it after that.