Sunday, December 31, 2017

Basics terms of Stock Fundamental Analysis

Share Price=PE X EPS

P/E ratio=
Market Value per Share / Earnings per Share(EPS)

Industrial PE ratio= Average of PE Ratio of all peer Companies

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

Book value of a stock = book value of total assets – total liabilities.

Dividend--A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Return on Equity(ROE) = Net Income/Shareholder's Equity

ROCE = Earnings Before Interest and Tax (EBIT) / Capital Employee

Revenue is simply the total amount of cash generated by the sale of products or services associated with the company's primary operations.

Net income=Revenue-Total Expenses

Market it small,medium or large.
Select as per your investment plan.

Volume traded = Intra day traded shares + Inter day traded share.

Deliverables = Inter day traded share.

Deliverables % = (Inter day traded shares/Total volume traded) × 100

Reserves - Balance sheet reserves represent the amount of money insurance companies set aside for future insurance claims or claims that have been filed but not yet reported to the insurance company or settled.

Net worth - Net worth is the amount by which assets exceed liabilities.

Debit - A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Liabilities - A liability is a company's financial debt or obligations that arise during the course of its business operations.

Assets - An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.Increasing Value indicates business expansion.

Promoters - A promoter is an individual or organization that helps raise money for some type of investment activity.

Financial Statements - Standalone financial statements show the financial position of the company alone (and no other legal entity).

Consolidated financial statements show the financial position of the company itself along with it’s subsidiary companies, associate companies and joint ventures.

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aarna singh said...

Information about market fundamentals and working formulas should be known by every trader, if they want to earn with less chances of risk. However, many new traders are not aware of it. Hence, they prefer taking services like commodity tips.

Indira Securities said...

Market was range-bound, premium valuation and lack of fresh triggers influenced investors to take a cautious approach on heavyweights. But the reasonable valuation of mid & small caps attracted inflows leading to outperformance in the broad market.
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