Overall Score: How The Screener Scores The Premium Stocks

The Overall Score - Image

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 […]

Shortlist Quality Companies For Long-Term Investing

If you’ve landed on this page, it means you’ve searched for quality companies to invest in for the long term. In this article, we learn how to shortlist such companies. We’ll know the process of finding such stocks on our own. There are seven golden steps that will help us find shares of quality companies available […]

Return On Invested Capital (ROIC) – Definition, Formula & Interpretation

ROIC - Image

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 called shareholders, and the latter are bondholders or borrowers (like banks). The sum of funds raised through and bond is called invested capital. The return generated by the business on […]

Free Cash Flow (FCF) – Formula, Calculation & Types

Free Cash Flow - Image

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 a hypothetical example and calculate the free cash flow for an individual. Suppose you won a prize in a car rally. The gift is payable in cash worth Rs.5,00,000. But […]

How To Calculate The Intrinsic Value In Excel Like A Pro [Beginners]

Calculate Intrinsic Value In Excel - Image

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. It is simple, and even beginners can practice it. There are limitations of estimating intrinsic value using this method. But experts say that using some valuation method is better than investing blindly […]

Financial Health Of A Company: How To Identify A Company With Healthy Finances?

Financial Health of a company - image

Talking about stocks, investing only in a financially healthy company is advisable. But it is easier said than done. Why? Because analyzing the financial health of a company is not easy for a novice? It is a thing that must be learned. In this article, we will try to do just that. Generally speaking, investors […]