Residual income method is a unique and a comparatively easier way to estimate intrinsic value of companies. What makes it unique is the factor called “residual income“. I’m a big fan of valuing companies using discounted cash flow method (DCF). Why? Because if done accurately, its computed intrinsic value can be very accurate. But its…
PEG ratio is a useful valuation metric for stock investors. Potential investors can use it to gauge if a stock is overvalued or undervalued. PEG is a ratio which establishes a correlation between company’s price valuation with its future growth prospects (see here). We are more conversant with the use of P/E ratio (Price to Earnings…
Generally speaking, good news about a company can take its stock price up, and bad news can take the price down. In real world, lots of news keeps floating about companies. Some news are good and some may be bad. Hence the struggle of price moving up or down is happening every second. But what…
Warren Buffett’s rules of investing are not just rules, they are principles based on which good businesses operate. So it would not be wrong to say that Warren Buffett is not just a great investor, he also has extraordinary business acumen. So let’s try to first dig into the roots of Warren Buffett and his investment…
If I can learn to emulate how Warren Buffett thinks, it’ll pave a path for success in all aspects of life. Who is Warren Buffett? Warren Buffett is not just a name. It has become a brand-name for investment. Almost everyone has heard this brand. As a person, Warren Buffett is Chairman and CEO of…
Hindustan Zinc is the 27th biggest stock in Indian stock market in terms of its market capitalisation (Rs.1,04,661 Crore). Another feature of Hindustan Zinc which makes it my favourite is it being an almost ‘debt free’ company. There are many debt free companies in India. But as Hindustan Zinc being in the metal space, staying…
Venky’s is a stock which operates in FMCG sector. It’s line of business is Food Processing. People know Venky’s more for their line of product dealing with ‘processed chicken’. It is one of the most well known businesses operating in the small cap sector. Why Venkys stock? In last 12 months, the price of Venkys…
On one side aluminium price is falling globally. On the other side the cost of Alumina (raw material) is rising. But this increase in raw material cost is not visible in aluminium’s market price. Why Aluminium price is falling? Because of the import duties imposed by USA. Donald Trump has been in sorts of trade…
Shree Cements share price has caught my attention since last 1.5 months. Its been falling steadily. Why Shree Cements? If we will prepare a list Top 100 stocks in terms of Market Capitalisation, Shree Cements will appear in this list. In fact as per my list, its Rank is #54th in the list. High Market Capitalisation…
We often come across stock metrics like Face Value, Book Value, Intrinsic Value and Market Value. What does these terms mean? How important it is for us to know the difference between them? A basic question that arise here is, does these definitions help us to pick better stocks? So you can see, these terms…
Goodyear India share price is trading at attractive levels? Lets do a fundamental analysis of it. Goodyear is basically brand which originated in USA. Charles Goodyear was the person who discovered the process of vulcanisation of rubber in 1839. Ford’s Model-T was the first car manufactured for mass public in USA in 1908. This car…
J Kumar Infraprojects share price has been in doldrums since last 2-3 quarters. J Kumar Infraprojects started its operations around in year 1980’s. In those days they used to maintain buildings of PWD. In a course of time, they registered themselves as full fledged civil contractor of PWD. This gave them orders for construction of…
