Introduction I recently saw an interview on CNBC TV18 where the representative from Chalet Hotels was present. The host asked a pointed question about the company’s hefty Rs.2,554.30 crore loan book. The representative calmly responded, saying the debt is within a “3x EBITDA” limit, which makes it manageable. When I heard that description of the…
Why Free Cash Flow Matters I still remember 2015. I invested in a mid-cap stock, lured by its shiny profit numbers. In that quarter, it reported almost a two times (2x) increase in its net profit. Big mistake. The company’s cash flow was a mess. It taught me a hard lesson: profits can lie, but…
Table of Contents Introduction 1. Does AI Fits Long-Term Stock Investing? 2. Smart Ways to Use AI 3. Tools That Can Work for Us (In India) 4. What Are The Limits of Using AI For Stock Investing? 5. Reliable Method for Stock Investing 6. Where and How to Insert AI into This Method Conclusion Introduction…
Introduction Recently, I saw this Reddit post related to Reverse Stock Split. Someone bought 18,000 shares in his company for about Rs.4,00,000 (about $5,000). After the company went public, a reverse stock split left him with just 3,000 shares. He was worried that if he got cheated. Sound familiar? If you’ve ever been confused by…
Discover Earning Yield Premium Step 1: Understanding Earnings Yield Earnings Yield (EY) measures a company’s earnings per rupee of stock price. For Indian Oil (IOC), with EPS ₹9.63 and price ₹143, EY is 6.73%. For HDFC Bank, with EPS ₹91.96 and price ₹1,995, EY is 4.61%. High EYHigh EY indicates a stock is undervalued relative…
To calculate EPS growth accurately, adjust past EPS for ‘bonus issues’ or ‘share splits’ by dividing it by the bonus or split ratio, showing true profit growth. But don’t adjust for new share issuances, as they reduce existing shareholders’ earnings share. Read the blog for detailed explanation.
Minority interest impacts stock price valuation by requiring subtraction from enterprise value in the equity value formula to reflect only the parent company’s shareholders’ stake. Negative minority interest, due to subsidiary losses, increases the parent’s equity value by reducing deductions.
Table of Contents Introduction 1. Enhancing Value: The Four Levers of Business Worth 2. From Business Value to Stock Price 3. Special Scenarios: Acquisitions & Distressed Situations 4. Relative Valuation: The Market’s Lens 5. Asset-Based Valuation 6. Private Company Valuation 7. Real Options: Valuing Strategic Flexibility Conclusion Introduction Valuation, at its core, is about understanding…
Embassy REIT Portfolio Explorer All CitiesBengaluruMumbaiPuneNoidaChennaiBellary District, Karnataka All Asset TypesCommercialHospitalitySolar Property Name City Type Market Value (₹ Cr.) % of GAV Table of Contents Introduction 1. DCF Approach for REITs 2. DCF Analysis Discount Rates 3. Embassy REIT’s Intrinsic Value – 3.1 Gross Asset Value (GAV) – 3.2 Net Asset Value (NAV) – 3.3…
ROE Boosting Strategy You’re the management of Bharat Industries, an Indian manufacturing firm with a 15% ROE. Adjust the sliders to apply strategies and click Apply Strategies to see how they boost ROE! Profitability Enhancement (0–10) 0 Debt Usage (0–10) 0 Asset Efficiency (0–10) 0 Apply Strategies ROE Impact 15.00% Apply strategies to see how…
Fair Value Calculator – ROE and P/B Ratio Method ROE to P/B Valuation Calculator Return on Equity (ROE, %) Cost of Equity (COE, %) Retention Ratio (% of earnings reinvested, %) Current Market P/B Ratio Calculate Click “Calculate” to see the fair P/B ratio and valuation insights. Learn More About ROE and P/B in the…
Bonus Share Calculator Calculate how many bonus shares you’ll receive based on your current shareholding and the bonus ratio (e.g., 1:2 means 1 bonus share for every 2 shares held). Number of Shares You Own: Bonus Ratio (e.g., 1:2): : Calculate What is a Bonus Share? A bonus share is an additional share given by…
