Financial intelligence is not developed in young people when they are in school. People who’ve it, got it from self-study and practice. But, in the midst of our daily chores of life, self-learning may look like a burden, extra effort. Hence majority skip it. Our education system is not formatted to include money-related lessons in…
Among other metrics, our stock screener stands out because of two important numbers, the overall score, and intrinsic value. The intrinsic value of stocks is estimated based on a few standard financial models like DCF and a few of my own algorithms and logic. But the overall score-rendering proved to be more complicated. Why? Because…
What does it mean by fundamentally strong stocks? These are stocks that have a strong underlying business. As an investor, what parameters we must investigate to determine whether a business is strong or weak? This is what we’ll discuss in this article. [For a broader perspective, check out our guide on Top Stocks to Buy…
Most people think a powerful stock analysis platform must be expensive. But The Stock Engine was built differently. By keeping the infrastructure lean, avoiding unnecessary costs, and developing much of the system internally, I’m able to offer professional-grade stock analysis at pricing usually seen in simple reporting tools.
Why do the big companies have debt? Are there disadvantages to being a debt-free company? Debt is Good or Bad for Companies? We often see companies carry debt on their balance sheet. For example, here is data for companies in the BSE-500 index. Out of all stocks in this index, only 19% are debt-free. About…
I built Stock Engine to solve a major gap in stock investing tools. Most platforms only report financial data and ratios, but investors need interpretation. Stock Engine analyzes stocks across key investment parameters and answers the most important question: “Is this stock good or not?”
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 capital to yield net profits. A list…
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…
The power of compounding is as synonymous with human life as are the three laws of motion. The best part is, its effectiveness can be explained using mathematics. It is a theory which is a “must-follow” for everyone.
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.
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.
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.
