AS THE SENSEX has crossed the 66,000-level, it is quite possible for investors to fall into a value trap, a situation in which an investment appears to be undervalued by using traditional valuation metrics.
A stock that appears to be undervalued based on specific financial ratios like price-to-earnings (P/E) or price-to-book ratio or higher dividend yield but continues to decline or remains stagnant for an extended period can mean a value trap. In other words, investors get trapped in a stock that appears to be cheap but fails to realise its perceived value.
How to spot value traps
هذه القصة مأخوذة من طبعة August 02, 2023 من Financial Express Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 02, 2023 من Financial Express Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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