Let’s learn to analyze a stock from the perspective of the total return it yields for shareholders. To get a feeling about the total return, we will have to look back and brush up on some basic concepts. Suppose there is a company that makes a cash profit of Rs.10 Crore. How to utilize the profit? Considering…
[Updated] Discounted Cash Flow (DCF) method is a better way of intrinsic value calculation. The DCF model is derived from a concept called Net Present Value (NPV). Why Intrinsic Value is required? Because based on it, one can judge if the stock is fairly priced or not. DCF method is not an easy way of doing price…
Before we can do a leverage analysis of a company, we must know the basic definition of “leverage.” What is leverage? There can be two sources of capital for a company. First, equity and second is borrowed money (loan/debt). When a company uses loans to fund its capital requirements, we can say it is leveraged. What does the…
![Compare Indian Banks: A Quick Fundamental Analysis [2023]](https://ourwealthinsights.com/wp-content/uploads/2021/05/Compare-Indian-Banks-Image4.png)
Let’s compare Indian Banks to know which are the best banks and which are avoidable. A Screener for Top 20 Banks. Since 15th-Feb’21 nifty bank has corrected from 37,300 levels to 33,100 levels as of today (10-May’21). This is a correction of almost 11%. [For a broader perspective, check out our guide on Top Stocks…
Long back, I faced an issue with my health insurance policy. Our claim got rejected on the grounds of pre-existing disease. It happened in Yr-2008 when I used to work in Kolkata. We were very unprepared for the claim rejection. Moreover, I was also unaware of the criticality of such a clause. Hence, that episode made…
The year 2020 was tough (COVID-19). The second wave in the year 2021 seems to be even more lethal. During these times, people have realized that good money habits can prove to be saviors. Whenever humanity comes under stress, people tend to resort to basics. Food, shelter, health, family takes priority. But to better manage…
In our series of articles about stock basics, we talked about the economic moat of a company. A wider Moat gives an edge to the company over their rivals. Such companies operate with high margins. But how to identify moat companies? In our previous article, we’ve talked mainly about the qualitative factors that give moat to companies. But it is also…
Generally, when we analyze stocks, it is based on quantitative data. But everything about a company is not quantifiable. Judging the quality of Management based on the numbers alone is not possible. Hence, before digging into the numbers, starting stock research by just observing a company is considered good. What to watch in a company? We can look at the group of people who…
A business that operates in an industry (sector) having fierce competition cannot display a competitive advantage. But a company dwelling as a monopoly (like Microsoft) will have an exceptional advantage. So, a sector with too many competitors in it is not good for its companies. As a customer, we would like to buy products of…
Understanding a company is essential before buying its stocks. Why? Because Stocks represent proportional ownership in a company. So, what is the utility of this information about stocks/business? Let’s understand this with an example. Consider yourself looking at two companies, Nestle India and Jet Airways. Former represents a healthy business, while the latter is languishing with…
Where to invest money in India? There are more than 100 investment alternatives available in India. Here in this blog post, I have compiled it all in one place. I’ve challenged myself to indicate 100+ ways of investing money. There can be a plethora of ways to invest money. But unfortunately, we know only a…
I was surprised to note how incomplete the information available around us is about the ways to invest money. Most write-ups point us only to investment options and say nothing more about them. People interested in knowing about the ways to invest money need more information. For example, stocks are an investment option. But how to invest in stocks? Readers would…
