Ploughing back profits is the exact opposite of paying out dividends. When a company makes net profits, a portion of the net profits are paid …
WHAT TO INFER FROM VIX AND HOW TO TRADE THE VIX
You general memories of the volatility index (VIX) must be of the sharp rise in the VIX during times of extremely volatility or global geopolitical …
WHEN TO USE PRICE/SALES TO VALUE COMPANIES?
One of the most popular measures of valuations in the stock markets is the P/E ratio or the Price / Earnings ratio. It essentially measures …
What is the link between the ROE and the P/E ratio?
Have you ever wondered why is it that companies with high ROE tend to have higher P/E Ratios? Take the case of sectors like FMCG …
How quick ratios give a better picture of a company’s health…
Working capital management in a company is all about a trade off between the current assets and current liabilities of the business. Typically, current assets …
How to evaluate the working capital of a company?
When we talk of company evaluation, most of us tend to get caught up in the big picture. Capital structure, fixed assets investment, borrowings, net …
Can you monetize your shares without selling them?
Over the last 10 years you have painstakingly created a solid equity portfolio consisting of a mix of blue chip stocks and quality mid cap …
Dividends versus buybacks – which is a better choice?
When TCS announced its second round of buyback of shares worth Rs.16,000 crore, it has once again raised the debate on how should companies in …
Short term returns versus long term returns: How to balance?
Returns on investments are for the short term and the long term. Some investments generate trading returns in a very short span of time. Some …
Bonus versus stock splits – How they compare?
Do Bonus and stock split create value for shareholders? Let us start with the unbelievable story of how Wipro created wealth over the years. Had …