Stock Shastra #3: You just need to look at 5 Financial Parameters to shortlist a wonderful company!

RT @StockShastra: Stock Shastra #3: You just need to look at 5 Financial Parameters to shortlist a wonderful company! http://bit.ly/d0cNP4

Hi,
You have not told about PE ratio. it is a important parameter without doubt.

good i,hv learned a lot, ur efoort is good, tell some stock name,which small investor can earn.

Stock Shastra #3 Look at just 5 Financials to shortlist a wonderful company http://ow.ly/1Nwdn

Stock Shastra #3 Look at just 5 Financials to shortlist a wonderful company http://ow.ly/1Nwd6

RT @StockShastra: Stock Shastra #3 Look at just 5 Financials to shortlist a wonderful company http://ow.ly/1Nwdn

One option could be to calculate it on your own, which could be a bit difficult. The other option, as mentioned in the Stock Shastra, is to log on to MoneyWorks4me.com where you will get a 10 YEAR X-RAY with these parameters for more than 1500 companies.

It is good but please let me know that how a small invester can find these details and where.

Thanks a lot Sanjoy. The Company Shastra in the newsletter, gives you information about some very good companies. However, you will have to invest in them at the right price.

Yes, Anuj. PE ratio is a important ratio but from a valuation perspective. A company with a low or high PE does not necessarily mean that it is a great company. For more on this read http://bit.ly/98D1Rp.

[...] said in Stock Shastra #3 that you need to look at only 5 financial parameters over a 10-year period to shortlist a wonderful [...]

[...] Stock Shastra#3: You just need to look at 5 financial parameters to shortlist a wonderful company! [...]

[...] Track Record & Sustainable Competitive Advantage were elaborately discussed in Stock Shastra #3 & #4. Now, coming to the 3rd characteristic; Respectable Management. You need to be sure about [...]

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Stock Shastra #3 Look at just 5 Financials to shortlist
a wonderful company http://ow.ly/1Nwdn http://fb.me/x2GJGkKs

Sir,
Thank U for U R 5 benchmarks for investment. Sir, kindly explain these 5 things with an relistic company financial figures example.
kindly, mail U R answer to sachin_glowing@rediffmail.com.

[...] To know more on what financial parameters will help you identify a fundamentally sound company, please read Stock Shastra #3 [...]

[...] should always be to check whether the company is fundamentally strong and has performed well in its 5 key parameters over the [...]

[...] for a fundamentally strong company – A company with strong fundamentals i.e. an excellent financial track record and a competitive advantage provides surety of future financial performance to investors. Such [...]

[...] the product/service of the company is worth investing in. You should at least have a look at the five key financial parameters and how they have grown to find healthy companies. This will help you in eliminating the weak [...]

how to calculate the BVPS and ROIC of stock from the balance sheet/financials of the company?

[...] Five Key Financial Parameters – The first and the most important step is to look at the past performance of the company as well as its future growth prospects. A company which has recorded consistent growth in its financials and has a sustainable competitive advantage is likely to give you great returns in the future. [...]

BVPS is calculated as Book value/No of shares. Book value is equal to shareholders fund. It can be found in the balance sheet under the heading ‘Shareholders fund’. Number of shares can be found in Schedule 1 under the heading ‘Share Capital’.

ROIC is calculated as Earnings before interest and depreciation/ Total capital. To read more on this click http://bit.ly/cJtpxa .

[...] or zero debt situation as they won’t be affected by changes in interest rate ( for this check the 5 key financial parameters you should look [...]

from where can we get the net profit debt ratio?

You can get all these 5 parameters alongwith the Debt to Net Profit ratio for your companies on our site http://www.moneyworks4me.com. Do check it out.

your explanation on bookvalue per share and the debt-to-netprofit ratio is simpler and more understandable than the usual things I have read.

BVPS OF BHEL IS NW 325….WT IT MEANS……..

Would you be able to provide this data even for a company which got listed in the last 2-3 yrs? 

very simple and great.
pl update me on my email id- sudhir_crystal@rediffmail.com

[...] our earlier article on 10 YEAR X-RAY (Stock Shastra #3) we talked about how in order to judge the historical financial performance of any company we need [...]