Shareholder Equity – Meaning, Basics, Examples, & Interpretation
A more common term for shareholder equity is Net Worth. It is visible on the company’s Balance Sheet. This number highlights the liquidation value of a company. What is liquidation value? It is the capital receivable at the hands of the shareholders after the company’s assets are sold and all debts are repaid. In terms […]
Return on Equity (ROE) – Understanding & Interpretation of The Ratio
What is Return on Equity (ROE)? It is a financial ratio that is calculated by dividing net profit (PAT) by the total shareholder’s funds (Net Worth – NW) of a company. ROE is the measure of the company’s efficiency that highlights how well the company is using shareholder’s capital to yield net profits. Suppose there […]
Relative Price Valuation – A Method To Compare Stocks & Judge Its Value
Performing stocks analysis by comparison method is relative valuation. We can compare a company’s valuation multiples with its industry average or with its peers. This valuation approach is easy but there are limitations…
Net Present Value Calculation: Estimating Intrinsic Value [All Steps]
The mathematics side of Net Present Value estimation is complicated. Hence, we’ve implemented the whole algorithm in our stock screener. Nevertheless, this article explains my NPV algorithm in full detail.
Price To Earnings Ratio [P/E] – Basics, Formula, Calculation, & Interpretation
P/E ratio in its basic form (trailing P/E) may not be as useful. But there can be multiple derivaties of it. P/E ratio seen through the lens of ‘earning yield’ or ‘PEG ratio’ gives good insights into price valuation. I personally love valuing high P/E stocks using the ‘forward P/E’ method.
Debt To Equity Ratio – Basics, Formula, Calculations, and Interpretation
The debt-Equity ratio (DE) is easy to calculate. But its interpretation is not as straightforward as we think. We generally assume that a DE ratio of 2 is acceptable. But for analysts, this number is too high. Let’s look at the DE ratio from an analyst’s perspective.
How To Shortlist Stocks for Investment – 12 Parameters [Screener]
If a layman would like to shortlist few stocks, what parameters must be considered? In this article I’ve explained how a 12-Parameter stock screener will help in the screening process.
Highest Return Stocks in India in Last 10 years [CAGR] [2022]
Along with the past returns, the screener also looks at the host of other stock data. A few prominent ones are listed in this article.
One can also use our stock screener whose algorithm filters stocks based on these parameters.
Bonus Shares and Stock Split: The Concept, Formula, and Examples
Bonus issue and stock splits make news for good companies. Long-term shareholders like this corporate action as it can increase the demand for their holding stock.
What is Value Investing? The Basics & Principles Explained For Beginners
With value investing comes a few synonymous terms like reading financial statements, intrinsic value, over and undervaluation, Benjamin Graham, Warren Buffett, long-term holding, etc.
Blue-Chip Stocks [India]: List of Mature and Stable Companies [2022]
If one desires to start investing in the stock market, the best starting point will be large-cap stocks. Even better will be to buy prime stocks within the large-cap space. Which are these prime stocks? They are blue-chip stocks.
Sensex 30 Companies: Their Weightage in The Index [2022]
The Indian stock market has two main indices, Sensex and Nifty-50. Sensex is the index of BSE and Nifty-50 is of NSE. Sensex has 30 number stocks as its constituents and Nifty has 50. In this article, we talk about Sensex 30 companies and their weightage in the Index. In case you are interested to […]