Sachin Kothari left his corporate job and moved to Dehradun to start Devbhoomi Nursery, today selling more than 20 varieties of flowers and vegetables.
You...
But Ved Krishna, a resident of Ayodhya, has started making biodegradable cups, plates, bowls, and packaging materials on a large scale from sugarcane waste. His...
16.1 - Drawbacks of DCF Analysis
In this chapter, we will discuss some of the important issues that can have a huge impact on your investment decisions. In the previous chapter, we saw how to calculate the intrinsic value of a company's stock using the DCF model. To find out the intrinsic value of a company DCF is probably the best approach. But this method also has its drawbacks. You should also know about these drawbacks. _ As we have discussed earlier, the DCF model is based on your assumptions. _ _ _ _ If your guess is not correct then this model won't work ok and you won't know the exact price of the share.
DCF requires forecasting – You know that in the DCF model, we need to forecast future cash...
12.1- Basis for stock selection
In the last few chapters, we have understood how to read financial statements and how to calculate some important financial...
10.1 The Leverage Ratios
We talked about financial leverage while discussing return on equity and DuPont analysis. Leverage means the use of debt is like a...
9.1 – Role of Financial Ratios
In the last few chapters, we have learned to read financial statements. Now we will learn to analyze them. For this, we have to first understand the financial ratios. Financial ratios were first introduced by a fundamental analyst named Benjamin Graham. _ _ them financial ratio Considered the father of. Through financial ratios, we can assess the financial results of the company. Current performance can be measured against the performance of previous years, previous quarters, and other companies. Financial ratios are usually included in the company's financial statements or financial statements. ' s data is used. _ Before understanding financial ratios, we need to know some of their important principles. Financial ratios by themselves do not provide much information. _ _ For example, if I am told that the profit of UltraTech Cement is 15%.If so, what will I know from this? It is true that a 15 % return is a good return, but is it the best return in the sector? _ Suppose you know that the profit of ACC Cement is 12 % and when we compare this profit with Ultratech _ If we do with the profit of Cement, then we will come to know that the profit of UltraTech is higher than that of ACC Cement. You must have understood from this that the ratio in itself does not tell much, but when it is used for any comparison You see the full picture. That is, it means that whenever you take out the ratio, it will be better if you use it for any comparison. Another important thing that you have to remember while calculating the ratio is that each company has its own unique _ _There is accounting policy. Accounting policies may also differ from financial year to year. _ _ _ That's why you should have this information while using the ratio.
9.2...
8.1 – Brief Description
The cash flow statement of a company is a very important financial statement. This shows how much cash the company is generating. You...