Return on Equity (ROE) – Understanding & Interpretation of The Ratio

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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 […]

Fundamental Analysis: How To Read a Balance Sheet Report?

How to read and analyze balance sheets of companies for investments

This is in a series of articles that will highlight the process of fundamental analysis. In this section, we will learn how to read a balance sheet report and also understand the business it represents. Out of the three financial reports, perhaps the balance sheet is one of the most important reports of all. Why? Because it gives […]

PEG Ratio: A Combination of PE & PEG To Value Indian Stocks

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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 […]

How to predict if a stock will go up or down [Beginners Guide]

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Ask common men, they will say that – stock’s price goes down more than it goes up. 🙂 Why do we think like this? Because we don’t know how to predict if a stock will go up or down. This is not only our problem, even experts of the stock market face a similar dilemma. […]

How Value Investor Screen Stocks?

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What expert value investors does best is estimation of intrinsic value of stocks. But there are 5,000+ stocks in market. They calculate intrinsic value of all stocks? No. This exercise will be too futile. They first shortlist good stocks. How they shortlist their stocks? They use a suitable stock screener. When we invest in stocks, focus should be on long term […]

Vakrangee Share Price Analysis

Vakrangee share price was at Rs.85 levels on Jan’16. By Jan’18 (in 2 years), it price moved up to Rs.505 levels. This was a CAGR growth of 143.7%. But ever since Jan’18, its price is only falling. By end of April’18 it price has touched a bottom of Rs.100 per share. This price fall was […]

Analysis of Indraprastha Gas Share Price

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What prompted me to do analysis of Indraprastha Gas share price? I noticed during my study of stock market in general that S&P BSE Utilities Index is trading very close to its 52W Low levels. Out of the major companies listed in S&P BSE Utility index, Indraprastha Gas was ranked 6th in terms of Market […]

Earning Power Value (EPV) Method of Stock Valuation

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Earning Power Value (EPV) method of stock valuation was developed by Bruce Greenwald. At the outset EPV may give an impression that it uses a too simplistic approach to value stocks. But when I went into its calculations, its phenomenally detailed and good. I was really impressed with the person who developed such a concept. Who is […]

Analysis of Syngene International share Price

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Syngene International share price is currently trading at range close to its intrinsic value. This is a reasonably good company to watch out for investing. One day I was going through a report published by Morningstar India and this name (Syngene) came to my attention. Morningstart informed that this company has strong financial health. But to top […]

How to Evaluate a Stock Price? (Part 4)

How to evaluate a stock price - LandingPage

How to evaluate a stock price? Is the process of evaluation easy or difficult? How long does it take to evaluate stocks? Is it really possible to arrive at some meaningful conclusion upon stock evaluation? These are few common queries that we have, related to stock analysis. Let me give you a quick answer first. […]