From an investor’s perspective, the utility of enterprise value lies in its ability to provide a comprehensive assessment of a company’s total value. By considering both equity and debt components, investors can gain a clearer understanding of the company’s financial structure and potential risks. This metric serves as a valuable tool for evaluating potential acquisitions….
The Indian healthcare sector is one of the fastest-growing sectors in the country. It has grown with a CAGR of over 20% in the last few years. This growth is being driven by a number of factors which we will discuss in this article. In the quest for long-term investments with promising growth potential, the…
Consumer sentiment is a measure of how people feel about the economy, and it can have a significant impact on economic decision-making. When people are feeling confident about the economy, they are more likely to spend money, invest, and start businesses. This can lead to increased economic growth. Conversely, when people are feeling pessimistic about…
In the realm of financial analysis, understanding operating profit is crucial. It serves as a key measure of a company’s operational efficiency and profitability. However, it is essential to grasp its limitations and consider it in conjunction with other metrics. This article explores the significance of operating profit, its components, calculation, and interpretation. It will…
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….
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…
