Important Financial Ratios for Fundamental analysis
1. Book Value Per Share =(Equity Share Capital + Reserve)/Total No. of Equity Shares
or
(Net Worth—Preference Share Capital)/Total No. of Equity Shares
2. Cover =Earnings Per Share (EPS)/Dividends per Share
3.Earnings per Share (EPS) ={Profit after Tax(PAT)—Preference Dividend}/Total No. of Equity Shares
4. Earnings Yield (%) =(Earnings Per Share (EPS)/Market Price of Share)x 100
5. P/E Ratio= Market Price of the Share/Earnings per Share (EPS)
6. P/BV Ratio=Market Price the of Share/Book Value of the Share
7. Yield (%)= (Dividend per Share/Market Price per Share)*100
sir u have mentioned the ratios but plz do tell us that between what range the numbers should lie so that the actions can be taken..suppose i have solved the ratios but then on what basis a call can be initiated.
same question from me also –sir u have mentioned the ratios but plz do tell us that between what range the numbers should lie so that the actions can be taken..suppose i have solved the ratios but then on what basis a call can be initiated
Dear Rujul
In Subsequent Posts you Will be updated About Use of these ratios in Merkets.
But One thing To clarify
There are no levels
Like if PE is below 50 You should buy or if any other ratio is above 60 you should sell.
its all comparative
you will be updated Soon
Warm Regards
Just a quick message 2 thx u 4 your useful post. Do u know where I can find more on the subject? have a nice day. Rachel x