In this blog, we will find out the factors that are important for finding long-term multibaggers by using an example of HEG and Graphite India. Here’s a chart of HEG which shows a gain of 28x in 2 years.
Financial ratios allow an analyst to immediately analyze a business and its operations and understand the financial situation of a company, it is important to know exactly what to do with this data and how to interpret it.
In past articles, we have looked at the P/E ratio and the PEG ratio. Another ratio that is important but not so popular is the P/S ratio. P/S ratio is calculated by dividing the market capitalization by the company’s trailing twelve month sales.
In an earlier post, we have introduced the P/E ratio and seen why it is not such a great indication of value stocks because most stocks are low priced because of a reason.
The P/E ratio is one of the most commonly used ratios in Fundamental Analysis, and if you use it in your investing, you need to know the pros and cons of using it. P/E ratio is defined as:
Often times, beginners to stock market analysis wonder which technique is more suitable for trading/investing. This article is a guide for choosing between one or both. To understand which technique you should chose, you need to understand what each one is all about first.