PEG ratio is a useful valuation metric for stock investors. Potential investors can use it to gauge if a stock is overvalued or undervalued. PEG is a ratio which establishes a correlation between company’s price valuation with its future growth prospects (see here). We are more conversant with the use of P/E ratio (Price to Earnings…
In India we have an investment option called “Post Office Monthly Income Scheme (MIS)”. Among other investment options, PO-MIS can also be considered suitable for investment by retired people. But PO-MIS is not limited for retired people alone. Anyone with age above 18 years can open a PO-MIS account. An account can be open even…
Generally speaking, good news about a company can take its stock price up, and bad news can take the price down. In real world, lots of news keeps floating about companies. Some news are good and some may be bad. Hence the struggle of price moving up or down is happening every second. But what…
Retirement planning is important. Why? Because this is what is going to give us financial independence after we’ve retired from our jobs/work. The planning will ensure the availability of the required funds when it’s time to retire. In India, the majority of service-class retired people depend on annuities to take care of their cash flow…
“What is the need of money management; after all we earn money only to spend it one day”. I was trying to be ironic. But I’m also sure that many will not find my statement ‘wrong‘. Read more about paycheck to paycheck lifestyle. Most of us actually earn money only to support our expenses of…
Sharpe Ratio helps you see if a fund is giving good returns for the risk it takes. A higher ratio usually means the fund is using risk more efficiently than others in the same category. If your fund has a lower Sharpe Ratio than similar funds for long, it may be time to review or exit.
Like long-term investing is a strategy to invest money, ‘rupee cost averaging’ is also an investment strategy to invest money by taking lesser risks. It enables people to eliminate the need to time the market. In rupee cost averaging the investor does not utilize all the funds to buy an asset at a single moment…
Predicting if a stock will go up or down involves checking rising profits (EPS), sales, and big investors’ actions. We can also comparing its P/E ratio to the industry. A lower P/E with growing profits, like for HDFC Bank, suggests a potential rise. Use this stock prediction tool (online).
Long term investment is not an investment option in itself. It is a strategy which we can follow to practice investment. Let’s understand it using an analogy. One can improve ones physical health by jogging or by practicing yoga, right? Both these exercise has the same goal – of making the person fitter. Jogging and…
Bank Stock Fundamental Analysis Tool Table of Contents Introduction Banking Business – Providing Lockers – Provide Saving Benefits Banks: Growth & Limitations Financial Ratios for Banks – #1. ADR and Its Growth – #2. Equity Multiplier (EM) #3. Return on Asset (ROA) #4. Return on Equity (ROE) Five Steps to Analyze Bank Stocks Conclusion Introduction…
How equity investment during COVID-19 Pandemic can be planned? It is easy for expert investors. Why? Because they have a right mindset to handle money during such times. But for we common men, equity investing may not be as smooth. Whenever there is global crisis (like 2008-09 debt crisis, Brexit, Dot-Com bubble etc), a class…
To do fundamental analysis of companies, it is important to look inside financial statements. There are three types of financial statements: The balance sheet, profit & loss accounts, and cash flow statement. These three documents has loads of numbers inside them. What a beginner should look for inside these reports? We will know about it…
