Search+Investment IdeasSynopsisMost investors live by one ratio. That ratio that tells them all they want to know – or should one say all they want to hear? They open a screen, sort by it, and start picking from the bottom. It is the habit of a lifetime, and it is wrong more often than they realise. But add a single letter to the ratio and it changes which stocks look cheap, which look expensive, and which look like a trap. In a market that has gone nowhere for 20 months, getting that distinction right has rarely mattered more. It is one number every investor knows. We learn about it before we learn anything else about the market. It is on every screen, in every brokerage note, on every business channel. It is stuck to the stock price like a tag in a shop window, and most people read it the same way they would read that tag: Lower is better. The number does the most convenient thing a number can do. It compresses a complicated question – is this company worth what the ETMarkets.com 26 mins readMay 31, 2026, 07:56:00 AM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership
20 months of bearish markets: One additional letter that tells you which 'cheap' stocks are actually cheap
Most investors live by one ratio. That ratio that tells them all they want to know – or should one say all they want to hear? They open a screen, sort by it, and start picking from the bottom. It is the habit of a lifetime, and it is wrong more often than they realise. But add a single letter to the ratio and it changes which stocks look cheap, which look expensive, and which look like a trap. In a market that has gone nowhere for 20 months, getting that distinction right has rarely mattered more.
600 words~3 min read
