Connection Between The 3 Reports Profit & Loss Statement Purpose: Shows the company’s performance over a specific period (e.g., quarterly or yearly). Connection: The final line, Net Income, directly impacts the other two statements: It flows into the Balance Sheet as part of Retained Earnings under equity. It is the starting point in the Cash…
ESOP Share Value Calculator Estimate the value of your ESOP shares for any company Free Cash Flow (FCF, in ₹ Crores) EBITDA (in ₹ Crores) Net Debt (in ₹ Crores) Number of Shares Outstanding (in Crores) Total Number of Shares Held Next Please fill all fields with valid numbers. Growth Rate (%) Discount Rate (WACC,…
Summary Points: Traditional businesses (like TCS, RIL, Britannia) focus on making and selling—revenue growth and margins are king. Banks (like HDFC or SBI) thrive on managing money: loans, deposits, and interest spreads drive them. Key differences lie in risks, metrics, and economic triggers: competition for one, bad loans for the other. Mixing up their analysis…
If you’ve ever scratched your head wondering how to figure out if a company is actually worth your hard-earned cash, you’re in the right place. Today, we’re diving deep into something called Return on Invested Capital (ROIC). It’s one of those metrics that sounds fancy but is actually super practical once you get the hang…
If you’ve ever peeked at a company’s balance sheet and wondered, “What on earth are retained earnings, and why should I care?”, you’re in the right place. I’ve been down that rabbit hole myself, and trust me, once you get the hang of it, retained earnings start to feel like the unsung hero of a…
“Forget the endless parade of bullish forecasts and “can’t lose” stock picks. If you’re serious about navigating today’s market, you need a dose of cold, hard reality. That’s exactly what Lee Munson, Chief Investment Officer at Portfolio Wealth Advisors, delivered in a recent interview. The message is clear, earnings still matter. AI needs to prove…
Ever wondered why some stocks zoom to the moon while others crash and burn? There are a lot of things that determine the stock price movement. But the story of the profits of the company plays a crucial role here. Like, there are many things that makes a great cup of chai, – right from…
We often hear about a company’s performance through a simple number: Earnings Per Share (EPS). It’s a quick way to understand how much profit a company makes for each share of its stock. But there’s a sneaky cousin of EPS called Diluted EPS (DEPS). Understanding it can save you from making some costly investment mistakes. Why…
If you want to know what is working capital or its basics, I’ll request you to check this blog post. But here, in this article, you will see the practical side of working capital. We’ll see examples of real life companies and see what constitutes their woking capita. To get a clearer perspective of working…
P/E ratio in its basic form (trailing P/E) may not be as useful. But there can be multiple derivaties of it. P/E ratio seen through the lens of ‘earning yield’ or ‘PEG ratio’ gives good insights into price valuation. I personally love valuing high P/E stocks using the ‘forward P/E’ method.
Recently, I got a query from one of my young reader (in 20s). The question says: “I have heard that ROE and ROCE are important metrics for evaluating stocks. But do they really influence long-term stock returns? If I look at last 10-year period, will it prove that high ROE and high ROCE stocks generate…
Price discovery is the natural mechanism through which the price of a stock is determined. Prices reflect the interaction between buyers and sellers. It is the result of what one is willing to pay and what the other is willing to accept. This dynamic ensures that stocks are valued as fairly as possible in real-time….
