Note: For the purpose of this article high share price does not mean numerically high monetary value. In the explanations, core focus will be on high valuation of the stock. Did this question ever bother you – after a company raises money via its Initial Public...
Last week a few of us were driving back towards Delhi from the interiors of Gurgaon. For those who have not been to Gurgaon – it is without a doubt the most outstanding contrast of beautiful constructions and unfortunate infrastructure. The roads which start with a...
One of the most common mistakes which investors make while selecting stocks is paying more attention than is due to the Return on Equity (ROE) or the return which the company generates on the employed capital. While ROE is an extremely important metric it should not...
I have lost count of the number of times I have been asked about the ‘target price’ and ‘nifty levels’. Some of you have written to me about adding a target price column in the subscription section of the site. The omission to add such a column is deliberate. While I...
The Nifty Price/ Earnings Ratio or the Nifty PE ratio is almost certainly the best buy / sell indicator for anyone who believes in buying good companies at cheap valuations. The way to calculate the Nifty PE Ratio is not any different from how the PE Ratio of a stock...
