The Price to Free Cash Flow (P/FCF) ratio is a valuation metric that compares a company’s stock price to its free cash flow. By dividing the stock price by the free cash flow per share, the P/FCF ratio provides insight into how much investors are willing to pay for each unit of cash generated by…
Let me tell you a story of the Chaiwala, the Software Engineer, and the Secret of Free Cash Flow. So, a few years ago, I was sipping chai at my regular spot near my office – you know, that tiny little stall run by Sharmaji, who makes the best ginger chai in the area. I overheard a…
Our Stock Engine’s effectiveness does not come from its fancy reporting style. It comes from its underlying algorithm that makes the complicated stock analysis more interpretable for its users. Ultimately, the purpose of any stock tool is to highlight if a stock is worth investing or not. The latest update is focused completely on making…
A majority of my blog readers have a long-term investment mindset. Hence, I often get this type of question that says, how to invest large sums of money for a long-term horizon? I’ll try to answer this query from my perspective. I’ll speak as if I’ve to walk the talk. I also realize that not…
The Indian aviation sector has been facing turbulent times in recent years. On 02-May-2023, Go First Airlines (Founded as GoAir) voluntarily filed for Bankruptcy. On the date of writing this article. the airline company has canceled all flights till 12-May-2023. I’ll try to explain why in a buoyant and growing economy like India, Indian Airline…
The recent fall in share prices of HDFC Bank and HDFC Ltd has created a buying opportunity for long-term investors, is it so? Despite the negative market sentiment, the fundamentals of both entities remain strong. Their financial performance is strong with a diversified loan portfolio. The twins also have a moat in terms of experienced…
In our lookout for growth stocks, we know that looking only at past returns will be grossly incomplete. Hence, we’ve learned to focus on profit growth in our analysis. But what if I tell you that profit growth is also not enough? It is also essential to check the degree of profitability of the company….
This article provides real-world examples and applications of the WACC. It is a critical concept used by companies in investment decision-making. As an investor, you will gain valuable insights on how to use WACC to evaluate investment opportunities and make informed decisions. The Weighted Average Cost of Capital (WACC) is a financial concept. It highlights…
While the discounted cash flow (DCF) model is a widely used method for valuing stocks. But it is not without limitations. Let’s examine the limitations of discounted cash flow (DCF) model. The limitations are with respect to present value calculation based on the future growth rate, cash flow estimation, and discount rate. The article will…
Share buybacks have emerged as a powerful tool for Indian companies to optimize their balance sheet and improve shareholder value. In this article, we explore the ins and outs of share buybacks and their impact on the financial health of Indian companies. Investors can potentially benefit from participating in a share buyback. When a company…
Recently a person told me that his credit card company is offering a higher credit limit to him. He asked about the benefits of a high credit limit on credit cards. He was doubtful whether a high limit is beneficial or otherwise. I think many people face a similar dilemma. Hence I thought to write…
During this Adani-Hindenburg saga, there is a concern that the LIC Investment portfolio is over-exposed to Adani Group company’s stocks. I think this concern looks misplaced. Out of the total capital of LIC, only 17% (INR 60.6 lakh crore) is invested in stocks. My estimate is that, out of these 60.6 Lakh crores, LIC’s exposure…
