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Company Valuation by Reproduction Cost Method

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…

How to Record Balance Sheet Transactions: Examples

How to Record Balance Sheet Transactions: Examples

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…

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About Book Value of Shares: How to Use it for Stock Investing?

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…

High EPS stocks - Image
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Screening Stocks of ‘High EPS Companies’ with three related value indicators

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…