Industry P/E vs Individual P/E in Intrinsic Value

Jesusr123

New member
Hello fellow traders!

Currently, I am employing the value investing strategy. To find the intrinsic value of my selected stocks, I have been using the calculator that TD Ameritrade provides.

To calculate an intrinsic value, I am required to have the Industry Price/Earnings found in the Valuation Tab of individual stocks. There are some stocks that have drastically different P/E between themselves and the industry; for instance, the stock CDB has a P/E of 6.62x in comparison to an Industry P/E of 33.17x. In addition, there are others that don't have such a great difference; for instance, AEL has an individual P/E of 4.03x and an Industry P/E of 14.30x. When I plug those two different numbers into the calculator, I get drastically different intrinsic values.

Which one would it be better to go with, Individual P/E or Industry P/E?
 

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