Technical analysis says buy on breakout !!! Fundamental analysis says its overvalued (high PE) !!! To whom I should listen to ?
Piyush-Gupta
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@Redfox44, fundamental & technical analysis has completely different application. TA is used for intra to short term & FA is used long term. So for intra TA take precedence.
@Redfox44, High PE is not the only correct parameter in fundamental analysis. We take into account a lot of parameters in fundamental analysis including EV multiples, the projected growth rate at which a company will grow. Intrinsic Value calculation takes into consideration a lot of things.
ansul1992
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@Redfox44, Most of the outperfoming stocks have high PE as market is ready to give more premium to it.You can take a lot of examples from Indian as well as US stock markets.YAHOO in US stocks is best examples.
in FUNDAMENTAL analysis give more focus on profits,sales increase with no/less debt and promoter holding /Fii holding and on cash flow.