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 …
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 …
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 …
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 …
Understanding the link between ROE and ROCE in analyzing stocks…
In the world of finance there are a good number of ratios to evaluate companies. There are profitability ratios, efficiency ratios, solvency ratios and liquidity …