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PE Ratio 

Price/Earning The most basic data item for fundamental analysis is ratio. Rule of thumb A lower PE ratio indicates a better valuation. Less than 22 is ideal. 

For several businesses including banking, nbfc, and fmcg, trading PE is 40-60. Thus, we must compare a stock's PE value to its historical price and Industry PE.

Debt Equity Ratio 

Any DE ratio above 1 is a red flag, and if it's more than 2, we should usually stay away from it completely. If the DE ratio is greater than 1

it means that the company owes more money than it has in cash or equity. This means that a lot of money is spent on interest, which means that the net profit is lost.

ROE  and ROCE  

The "business efficiency" is shown by these numbers, which basically show how much profit or cash is returned as profit for each new investment.

Financial Trend 

Any increase or decrease in PAT (Profit After Tax), Operating Margin, Sales, or any other metric indicates a more favorable future and, thus, a more favorable valuation.

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