Investment Strategies

Recently, I read a special report on ‘Investment Strategies for Different Market Conditions’ in DSIJ October 14, 2019 - MF Page 10 issue. Before anything, I want to say that it was a pleasure reading the special report with an emphasis on how to know the valuation of an asset. DSIJ Experts have derived a composite valuation indicator by a combination of PE ratio, price to book value, market cap to GDP, and dividend yield, which is valued at 200. In the upcoming DSIJ, can you please publish an article on how to calculate the composite valuation, considering the combination of PE ratio, price to book value, market cap to GDP, and dividend yield? Also, shed some light on from where the data can be obtained to estimate the value of the current market so that, going forward, it proves to be fruitful for all investors and, if the composite value is lower than some suggested value,they can grab the opportunity with both their hands. The contribution of DSIJ experts in deriving the composite value, considering various factors and not only just PE, is outstanding.

- Tapan Modi

Editor Responds :

Thank you for appreciating our story. We will definitely do a more elaborate story on this at an appropriate time. You can get those data from stock exchanges (BSE, NSE) and RBI.