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.
ROCE (Return on Capital Employed) is a financial ratio. ROCE formula has two components, EBIT and Capital Employed. EBIT represents the profit, and Capital Employed
Sustainable Growth Rate (SGR) is the growth rate that a firm’s current profit levels can sustain on its own (Self financeable growth). Suppose a company’s
The invested capital is the total funds generated by the company by issuing equity and debt in the market. People who subscribe to equity are
Free cash flow (FCF) is more valuable than the net profit (PAT) of a company. We will see how. To understand it, we will use
We already have multiple financial ratios emanating from the balance sheet and profit and loss accounts. Why do we need to add cash flow ratios
Value investors estimate the intrinsic value of stocks more accurately. But there are more than 5000 listed stocks in the market. Even the experts cannot
This article is about how to measure the profitability of companies. We will learn how to tell if a company is profitable. We’ll see which
Why operating profit margin is critical for investors? Because it highlights the profitability of operations of the company. A high operating profit margin is a
Growth at a reasonable price (GARP) is an investment strategy that is suitable for small investors like us. How? It clubs the growth and value
We’ve built an Excel-based tool that can analyze stocks. But how beginners can calculate the intrinsic value in excel on their own? In this article, I’ll discuss a procedure to do it.
There are only a couple of ways to identify good stocks for investing. Either we can do it ourselves or let the experts do it
