How the valuations compare with historical for leading companies – TCS, Infosys, Wipro, HCL Tech, Mind Tree, LT Info and Tech M
The Price to Earning (PE) ratio is a reflection on the revenue growth expected from a company. In the above table 5 year revenue growth of leading Information Technology companies and their current PE ratios are shown. The five year median PE is also included and how much higher or lower the current PE is relative to it
So, your selection from among these will be determined by what future outlook you have from a particular candidate in terms of its revenue growth or lack of it
Making judgements solely based on past performance is like driving a car by looking at the rear view mirror rather than through the windshield
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