There are only two ways, if I’m not wrong:
Take a look at these threads
Helo all.can we use market cap to cash flow(i.ecash from operations)as a tool to value a company
I prefer averaging up , the way I approach it is like I take a reasonable position in which company I am interested than as the results start pouring it helps to build more conviction so I buy more in smaller lots on every upside of 10\20 % . For example I took initial entry of 100 shares in bajaj finance at 750 during demonetisation ,than bought 50 more at 1100,50 more at 1500,50 more at 1700, 50 more at 2100 which makes total investment of 300 shares at 4lacs whereby my AVG cost being 1350 rs . If I would have waited to AVG it down i couldn’t have been able to buy any besides the first lot at cost of 75000 rs . My notional gain today would be 220000. But by 2nd approach on investment of 4lacs is fetching me near to 9 Lacs rupees
Whenever I have done so it personally has led me too losses ,maybe the stocks were of inferior quality . My best profits have come from averaging stocks up rather than on downs .
Maybe some other guy who practises the downward averaging approach can share
It’s just a proxy for the simpler P/E Ratio. It’s significance can range from significant (For a company that mostly sells through Credit) to none (For a company that’s in aggressive expansion mode). In the end, just like any other ratio, it has no use by itself. Using it along with several other ratios to made an informed decision would be the way to go. If you’d like to get to the bottom of Ratio Analysis, I’d suggest reading this (And practicing intently):
https://www.wallstreetmojo.com/ratio-analysis/
I invest more money into a stock I hold whenever it trades below my calculated Value. The method of calculation differs from person to person and that’s not the contention here. However, I don’t think it’s well-advised to invest in a stock you own just because it fell 5% or 10%.
Say, you think a stock is worth Rs. 500. It is currently trading at Rs. 600. Tomorrow, the stock drops to Rs. 540 - a 10% drop in a single day. But should this warrant a purchase from your side? Of course not, since your expected price is still nothing short of Rs. 500.
There can be several variants to this approach, but I believe that this is broadly how further investments should be made in a stock you already own. Any additional money you accumulate until such time can be parked in a safe debt fund.
This ability is famously termed ‘Assiduity’.
“Assiduity is the ability to sit on your ass and do nothing until a great opportunities presents itself.”
—Charlie Munger.
Probably a weird thing to post here, since this is not related to investing, but ValuePickr in specific.
Does someone have data related to how many people use the site regularly, how many 'Regular’s, 'Top Contributor’s and 'Moderator’s?
Just curious. @ayushmit @hitesh2710 @manish962
@dineshssairam,
Have a look here:
https://forum.valuepickr.com/badges
Top users:
https://forum.valuepickr.com/u/
Thanks a lot @drgrudge @manish962
However the https://forum.valuepickr.com/admin link doesn’t seem to work.
How does one account for reserves n surplus of company in DCF model for valuation of company
How can i get following information-
Hi ppl
A question to ponder over the weekend
This is about the quality of auditing done in India
My wife is pursuing her CA and she had finished the mandatory 3 year ‘Article Assistant’ at a leading Auditing office in Chennai (not wish to reveal the name)
As am from a non finance background, I keep bugging her with my doubts about Balance sheet ,P&L statement ,Cash flow statement and related parties disclosure in annual report.Eventhough she answers all my queries patiently,she consistently insists me not to believe the audit companies
According to her, the main job of the audit companies is to cook the books of the clients ,who approach them ,so that their Clients pay very low taxes to the government
Apart from the regular fees paid to the auditors,it seems the auditors also receive various kinds of gifts from their Clients.
Most of her company clients are super markets,wholesale shops,retail cloth shop whose revenue will be in the range of 10 lakh to 1cr.Offcourse none of the clients are listed
She is confident that most of the audit companies ,she knew operates in the same way
My only point of argument against my wife is big auditors like Deloitte Haskins ,KPMG would not work in that manner.
Can anyone throw light on this please
Reserves and Surplus forms part of the Equity Capital of the company. You use it while calculating the Debt-Equity Ratio and while calculating Re-investments. If you’re asking whether one should consider the absolute value of Reserves, then it’s a no.
Some of this information may be found in the Annual Reports. The website https://www.marketsmojo.com/ has information regarding Raw Materials and Finished Products for each company.
As I’d already mentioned, park whatever money you accumulate in a safe debt fund or a government security until a reasonable enough opportunity comes along. Just look at what Warren Buffet is doing right now. He’s sitting on almost $110 Billion in cash.
Thanks . Guess will have to read lots more
Hi… can anyone suggest a good site for personal finance… I refer value research online, which is good. Any other suggestions…?
New investors always find a way to go to the online stock market to win profitable success. The first and foremost things are to learn investing basics to easily access a number of sources. Just like taking a new smartphone game with trials, errors, losses and earnings, investing also starts with good information, practice and success route.
As investing in market can be frightening as a beginner, instead, one can learn some basic hot tips or just sit with any trading gurus in order to let them make sell or buy decisions in the market.
Hi , A small question on valuation of banks and finance companies. What price to book value ratio is generally considered as cheap/Expensive for Banks and Micro finance institutions ? Is a micro finance stock trading at less than 2.5 PBV and a Private bank less than P/BV of 3 are considered undervalued ? I know valuation is subjective but still I would like to know what others think on it.
How do I understand or analyze the business model of any company? What are the factors that I should look at for understanding the business model of any company?
