P

P

Lord Jesus Christ Says...

“If any of you wants to be my follower, you must turn from your selfish ways, take up your cross, and follow me. If you try to hang on to your life, you will lose it. But if you give up your life for my sake and for the sake of the Good News, you will save it.” Jesus Christ, Mark 8:34-35

13 May 2018

SHARE MARKET--8 steps to select a stock to invest in Indian stock market:


1.Does the company have good fundamentals?

2. Do you understand the products or services offered by the company?

3. Will people still be using this product or service in 15-20 years from now?

4. 5. What is the company doing that its competitors are not?

Does the company have a low-cost durable competitive advantage?

6. Does the company have big debt?

 7. Is the company’s management efficient and qualified?

 8. Is the company constantly in the news and overly popular?

Summary:

8 Financial Ratio Analysis that Every Stock Investor Should Know:
1.       Earnings Per Share (EPS) – Increasing for last 5 years
2.       Price to Earnings Ratio (P/E) – Low compared to companies in the same sector
3.       Price to Book Ratio (P/B) – Low compared companies in the same sector
4.       Debt to Equity Ratio – Should be less than 1
5.       Return on Equity (ROE) – Should be greater than 20% 
6.       Price to Sales Ratio (P/S) – Smaller ratio (less than 1) is preferred
7.       Current Ratio – Should be greater than 1
8.       Dividend Yield – Depends on Investor/ Increasing preferred

No comments:

Post a Comment