Today, we’ll learn about inverted yield curve, and how it predicts recession. There is no any foolproof formula as such that helps to predict the future path of the economy or recessions in particular. However, one can safely state that one indicator does predict the recession more or less accurately, and that is the inverted […]
In previous blog post, we learnt what is Enterprise Value (EV), EV-to-EBITDA ratio and how it is used by investors who want to compare two companies in same sector.
What is Enterprise Value (EV)? Enterprise Value (EV) is a direct valuation metric, used to measure a company’s total value; that is, an estimated cost of acquisition. It is treated as a more comprehensive alternative to equity Market Capitalization. In this blog post, we will learn what is Enterprise Value , how to calculate it, […]
Market Capitalization (or Market Cap in short) is one of the most important Fundamental parameters used to value any company. Market capitalization is the value of a company determined by multiplying the current market price of one share of the company by the total number of outstanding shares. Since it defines the actual value of […]
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.