Taiwan Semiconductor Manufacturing Company Ltd.NYSE
Huraian
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PE Band is a very practical stock selection technique for investors, which can be used to judge whether the company's stock price is currently overvalued or undervalued. The PE ratio center line of the stock must be set every time the stock is changed because of the program limitation of Tradingview. Usually we use the 5-year median to judge whether the company's stock price has a discount . Not all stocks are suitable for using PE Band, especially cyclical stocks. You can also use ROE to determine whether the company is a cyclical stock.
Thank you for your great piece of work. I start using your indicator to analyze fair value of my stocks and come up with some doubts. Please can you shed the light on how the discount is calculated. I guess it is based on 5Y-median and the center line PE values but it turns out to be off by huge percentage. Thank you very much in advance.
earth_master22
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I would like to know where this method takes the Pe value to calculate? the applied PE is the 5 year historical value from 2016 to 2020?