Not everybody likes investing in small-cap stocks. Why? A general feeling about small-cap stocks is that they tend to default on their creditors and investors. But it is an excessive generalization of the fact. However, it is also true that it is more likely to find badly managed companies among the group of small-cap stocks….
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…
Ajanta Pharma share price is currently trading at range close to its intrinsic value. Hence it looks exciting. But before looking at its financials in more detail, lets know more about this company. Introduction: Ajanta Pharma got itself listed in BSE and NSE in year 2000. As its name suggests, it is a Pharmaceutical company….
Out of all valuation methods, companies valuation by reproduction cost method is most understandable. Valuation of a company is perhaps the most critical aspect of value investing. Value investors tend to value the company more accurately as compared to their inexperienced counterparts. In order to value a company one must dig deep into their balance…
Every balance sheet transactions recorded by the company, alters its Balance sheet. For investors, it is interesting to understand balance sheet transactions of companies. Though the understanding of balance sheet transactions is not essential, but its knowledge helps. It will greatly help value investors to read and interpret companies financial reports. When I started learning about balance sheet…
Lowest NAV mutual fund means it is undervalued? No necessarily. One can earn higher return if one buys a good mutual fund at undervalued NAV. There is a difference between “undervalued NAV” and “lowest NAV”. Low NAV does not necessarily mean the fund is undervalued. Lower NAV may be cheap for your pocket, but it…
Lupin Limited (BSE:500257) is an Indian Pharma stock. In terms of Market Cap, Lupin Ltd is the 5th largest stock after Sun Pharma, Cadila, Cipla and Piramal. Lupin Limited is also among the Top 100 stocks of Indian stock market in terms of Market Capitalization. Lupin currently ranks as high as 64 in list of…
Book value of shares gives us a ‘rough idea’ about the stock’s ‘true value‘ (Book value & other details of top Indian stocks). What is true value? True value is that price of a stock, which an investor must pay to buy it. But why book value gives only a rough idea? Because it considers…
What is the significance of high EPS companies? Why investors look for stocks with high EPS ratio? Does high EPS really means that the stock is good for investing? [list of High EPS stocks is here] Principally, ‘high EPS’ of a stock is a good thing. But high EPS alone does not make a stock…
