Bengaluru, Sept. 6 -- One of the effective methods for assessing whether a stock is undervalued or overvalued is by analysing key metrics such as the Price-to-Earnings (P/E) ratio and the industry P/E average. The P/E ratio or Price-to-Earnings ratio compares the current share price to the earnings per share (EPS) of a company, serving as a widely recognised indicator for determining the value of a stock.
When a company's P/E ratio is significantly higher than the industry average, it may indicate that the stock is overvalued, as investors are paying a premium for its earnings or betting on its future growth.
Here's a look at the top five Nifty 50 stocks with the highest Price-to-Earnings (P/E) ratios:
Titan Company Limited
With a marke...
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