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…
I was doing a detailed analysis of profit margin of few Indian companies. Two names that came to my attention were HEG and Graphite India Why my stock screener flagged these companies to me? Because between a period of Mar’2014 and Nov’2018, in a span of 4.5 years, these stocks were giving a return of…
The formula which is used to calculate dividend yield is simple. Dividend yield equals dividend per share divided by price. But what makes the dividend yield formula interesting is the “price” placed in the denominator. How? What we generally consider ‘price’ is actually “current market price” of stock, right? But pro stock investors generally consider…
We often come across stock metrics like Face Value, Book Value, Intrinsic Value and Market Value. What does these terms mean? How important it is for us to know the difference between them? A basic question that arise here is, does these definitions help us to pick better stocks? So you can see, these terms…
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…
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…
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….
Out of all valuation methods, companies valuation by reproduction cost method is most understandable. Valuation of a company is perhaps the most critical aspect of value investing. Value investors tend to value the company more accurately as compared to their inexperienced counterparts. In order to value a company one must dig deep into their balance…
Every balance sheet transactions recorded by the company, alters its Balance sheet. For investors, it is interesting to understand balance sheet transactions of companies. Though the understanding of balance sheet transactions is not essential, but its knowledge helps. It will greatly help value investors to read and interpret companies financial reports. When I started learning about balance sheet…
Book value of shares gives us a ‘rough idea’ about the stock’s ‘true value‘ (Book value & other details of top Indian stocks). What is true value? True value is that price of a stock, which an investor must pay to buy it. But why book value gives only a rough idea? Because it considers…
Intrinsic Value Calculator (Modified Ben Graham’s Formula) Modified Benjamin Graham Formula EPS (Rs./Share): Expected Growth Rate g (%): Bond Yield Y (%): Current Market Price (Rs.): 💡 Calculate Introduction Have you ever wondered how some investors, like Warren Buffett, seem to pick winning stocks time and again? It’s not magic or guesswork. It’s about understanding…
