Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! To the annoyance of some shareholders, Talwalkars Better Value Fitness (NSE:TALWALKARS) shares are down a considerable 37% in the last month. The recent drop has obliterated the annual return, with the share price now down 11% over that longer period.
Assuming nothing else has changed, a lower share price makes a stock more attractive to potential buyers. In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious).
So, on certain occasions, long term focussed investors try to take advantage of pessimistic expectations to buy shares at a better price. Perhaps the simplest way to get a read on investors’ expectations of a business is to look at its Price to Earnings Ratio (PE Ratio). A high P/E ratio means that investors have a high expectation about future growth, while a low P/E ratio means they have low expectations about future growth.
Does Talwalkars Better Value Fitness Have A Relatively High Or Low P/E For Its Industry?
Talwalkars Better Value Fitness’s P/E of 7.46 indicates relatively low sentiment towards the stock. We can see in the image below that the average P/E (21.5) for companies in the hospitality industry is higher than Talwalkars Better Value Fitness’s P/E.
Get To Know Yourself It’s Going to be a Long Ride
Living fit (for life) is about you becoming aware of your body’s fitness shortcomings and designing a lifestyle that will improve them and maintain them at a high level. It’s really that simple. It’s not a get ripped-up for summer then gain all the weight back in the fall type of lifestyle. Sure there are times when a fit person may decide to take some aspect of fitness and improve it considerably in order to enjoy the benefits of it, but the thing to remember is there is no stopping point.
This is a key concept that is so simple, but so absent from most people’s lives. The fitness lifestyle never stops. It doesn’t end when you quit playing a sport, it doesn’t end when you get married and it doesn’t end when you start your own business. There is no stopping point for those who live fit. Sure we all have setbacks, struggles and challenges to overcome; but we overcome them. We know that these setbacks, struggles and challenges will be overcome while living in the fitness lifestyle.
In other words we do not modify our lifestyle in order to deal with issues, we deal with issues while maintaining our lifestyle. As simplistic as this sounds, I’ve found that this is perhaps the hardest aspect of living fit that most people deal with. Of course there are meals, days and times when we do things that are contrary to our fitness beliefs and lives. But they are the exception, not the rule. These things are allowed into our lives as a break from the norm, as brief events that add to our lives in other ways and are worth the cost.
Some examples may be:
Eating cake with your child on their birthday – there are so many positives that come from this
Having some drinks with an old friend who needs to talk – friends are priceless, this won’t hurt you
Enjoying cultural events by partaking in its food and drinks – many things in life can’t be replaced
So you get the picture. Living fit is not about sporting six-pack abs year-round (but can include this) until you get married then adopting the beer belly.
Living fit is about a lifetime of choices and actions that lead to your physical betterment as your life goes on from phase-to-phase and relationship-to-relationship. The greatest thing I love about the fitness lifestyle is that it is never too late to begin. This is an amazing concept that has changed the lives of millions, myself included, and it can do the same for you if you so choose.