PE Rating by The Noiseless Trader

PE Rating by The Noiseless Trader
This script analyzes a symbol’s Price-to-Earnings (P/E) ratio, using Diluted EPS (TTM) fundamentals directly from TradingView.

The script calculates the Price-to-Earnings ratio (P/E) using Diluted EPS (TTM) fundamentals. It then identifies:
PE High → the highest valuation point over a 3-year historical range.
PE Low → the lowest valuation point over a 3-year historical range.
PE Median → the midpoint between the two extremes, offering a fair-value benchmark.
PE (Int) → an additional intermediate low to track more recent undervaluation points. This is calculated based on lowest valuation point over a 1-year historical range

These levels are plotted directly on the chart as horizontal references, with markers showing the exact bars/dates when the extremes occurred. Candles corresponding to those days are also highlighted for context.

Bars corresponding to these extremes are highlighted (red = PE High, green = PE Low).

How it helps

1. Provides a historical valuation framework that complements technical analysis. We look for long opportunity or base formation near the PE Low and be cautious when stocks tends to trade near High PE.
   
2. We do not short the stock at High PE infact be cautious with long trades.
   
3. Helps identify whether current price action is happening near overvalued or undervalued zones.
   
4. Adds a long-term perspective to support swing trading and investing decisions. If a stock is coming from Low PE to Median PE and along with that if we get entry based on Classical strategies like Darvas Box, or HH-HL based on Dow Theory.
   
5. Offers a simple visual map of how far the market has moved from “cheap” to “expensive.”
   

This tool is best suited for long-term investors and swing traders who want to merge fundamentals with technical setups.

This indicator is designed as an educational tool to illustrate how valuation metrics (like earnings multiples) can be viewed alongside price action, helping traders connect fundamental context with technical execution in real market conditions.