THINGS TO CHECK BEFORE BUY AN EQUITY SHARE FOR AVOID LOSE

THINGS TO CHECK BEFORE BUY AN EQUITY SHARE FOR AVOID LOSE

BY DR. PRASANTH S BE BBA MBA PH.D

CONTACT: WHATSAPP/MOBILE: +91 9924764558


PRICE EARNING RATIO (PE)

The price earning ration of the share should be below 10

INTRINSIC VALUE

This is a very important component of any share. Every investors should see this. It should be above the market value of the share. 

SALES GROWTH 5 YEARS

Sales growth of the company in five years should be between 10-25% minimum.

OPM FIVE YEARS

It should be in between 18-25%

INTEREST COVERAGE

It should be less than 3

D/E RATIO

It should be below 0.5 

CURRENT RATIO

It should be above 1.25

AVERAGE RETURN ON EQUITY

It should be in between 18-25%

EARNING YIELD

It should be above current bank FD interest rate

PRICE TO SALES RATIO

It should be between 1.5 to 3

PLEDGE PERCENTAGE

It should be Nil

DEBTOR DAYS

It should be below 30 days

Apart from these values we need to see the profit making of that particular company in last five years. It should be gradually increasing. 

Management quality also to be studied. 

FOR MORE DETAILS REGARDING SHARE MARKETING INVESTMENTS CONTACT

DR. PRASANTH S BE BBA MBA PH.D

WHATSAPP/MOBILE: +91 9924764558 OR +91 9447965521