Helping You Build Wealth With Honest Research
Since 1996. Try Now


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

--- This is third party advertisement ---

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Join Mega webinar
Navigating Markets in 2024 -
Fund Managers Year End Perspective

Live on Dec 6th @ 6pm

Register Now


Overvalued Stocks

An overvalued stock has a current price that is not justified by its earnings outlook typically assessed by its price-to-earnings (P/E) ratio.

Similarly, a company is considered overvalued if it trades at a price that is unjustifiably and significantly in excess of its peers.

Earnings analysis is the most common way to identify an overvalued stock.

The most popular valuation metric for publicly traded companies is the P/E ratio, which analyses a company's stock price relative to its earnings.

Stocks with a high P/E ratio are considered to be overvalued.

Overvalued stocks are sought by investors looking to short positions and capitalize on such anticipated price declines.

Investors must be careful in identifying overvalued stocks, as some stocks may legitimately trade at a premium due to their brand recognition, superior management, or other factors that increase the value of one company's earnings over another.

Check out Equitymaster's powerful stock screener which screens stocks based on fundamentals, valuations along with other themes. Here, you'll find a list of overvalued stocks along with the undervalued ones.

The 5 Most Overvalued Stocks in India. Will these Stocks Crash in 2024?

Oct 12, 2023

Is this a warning sign to sell? Read on to find out...

Why Indian Defence Stocks are Not Overvalued Yet

Jun 14, 2023

Unless your timeframe to stay invested in defence stocks is short, you may not want to miss the upside.

Insider Buying Alert: Examining Promoter Holding Changes in these 6 Stocks

May 13, 2023

While promoter holding is an important parameter, it should not be the sole reason for buying a stock.

Why Indigo Paints Share Price is Falling

Feb 15, 2023

No respite for shareholders as Indigo Paints once again fails to cheer investors in Q3. How much more can the stock fall?

Say NO to High PE Stocks like Adani and Look at These 3 Undervalued Stocks in 2023

Feb 3, 2023

After the recent Adani stocks selloff, investors are wary of high PE companies. But is that a good indicator or should one look at Price Earnings to Growth instead?

Saurabh Mukherjea Dumps Relaxo Footwears; Buys Stake in this Tata Group Stock

Jan 21, 2023

Saurabh Mukherjea exits one of his favourite stocks, while buys stake in a Tata group multibagger company.

Avoid These Stocks in 2023

Dec 19, 2022

Here's my list of stocks that could destroy wealth in 2023.

The Stock Market is Rising. Here's How You Should Plan Your Investments

Aug 17, 2022

The markets are getting close to their all-time highs. What is an investor's right course of action?

Shrinkflation: The Inflation You're Not Supposed to See

Jun 23, 2022

Everything we are buying is getting expensive. We are just not noticing it. Welcome to the world of 'shrinkflation'.

5 Stocks Nearing 52-Week High in a Weak Market. What's the Secret Behind their Gains?

Jun 17, 2022

Despite the downtrodden markets, these five stocks have been on a tear, touching their 52-week highs.

Power Stocks: Value Buys or Value Traps?

Aug 4, 2023

Power stocks have found favour after a long wait. Find out what lies ahead for them and how to invest in the best power companies.

This Company's Stock Price Just Hit Rs 100,000. Is it Still Value for Money?

Jun 13, 2023

Even though this company has always been high priced, it has gained over 6x in the past 10 years. This proves that a highly priced stock can still be an outperformer.

4 Stocks that Could be a Risky Investment

Apr 15, 2023

While investing in stocks always comes with risks, these stocks pose unique challenges.

Here's Why You Should Avoid Overvalued Largecaps and Focus on Midcaps

Feb 9, 2023

I believe it doesn't make sense to buy large-cap stocks now.

Why Adani Green Energy Share is Falling

Jan 25, 2023

The star performer of the Adani conglomerate has seen a downtrend in recent months. Find out why.

The 5 Most Overvalued Stocks in India. Will These Companies Crash in 2023?

Jan 12, 2023

The five most overvalued stocks in India are very popular, but will they crumble in 2023?

Beware. These Stocks Could Poison Your Portfolio in 2023

Dec 5, 2022

Here's my list of stocks that could destroy wealth in 2023.

When NOT to Buy a Stock

Jul 26, 2022

What are the don'ts you should keep in mind while investing in share markets? Read on to find out.

Wait! Don't Buy the Smallcap 'Dip' Just Yet

Jun 20, 2022

Why this may not be the best time to buy smallcaps.

Ramesh Damani on Compounding, Making Rs 100 Crores, Next Stock Market Leaders

Jun 13, 2022

In episode 2 we talk about what could lead the next wave in the stock market, training the next generation for managing the Damani portfolio and why shopping for expensive handbags is not a good idea if you want to get rich with stocks. Here goes...