Category: Finance
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How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model
Introduction Sum of the parts (SOTP) is a type of valuation model for valuing the overall valuations of the company by breaking the business model into several small entities or smaller business models. These collections of business are valued independently and then clubbed to form a singular valuation model for the stock. Mathematical representation SOTP…
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Why Are Growth Stocks Better Than Dividend Payout Stocks
Introduction Growth stocks and dividend payout stocks are stocks that are divided based on what they do with their Profit After tax. A growth stock re-invests its money back into the business for expansion or try to diversify the other reach of market segments. A dividend payout stock on the other hand, takes the profits…
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How To Identify A Business Model Of A Company
Introduction A business model can be defined as a methodology a business or a company is in existence for it to generate profits for an infinite duration. A model of revenue generation that can sustain itself to remain in business, handle the expenditure and keep the share holders content. There are times where a company…
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What Is Sharpe Ratio In Mutual Fund | How To Use It
Definition of Sharpe Ratio Sharpe Ratio is a ratio that is used to calculate the stability of the return of a particular mutual fund to risk free assets like Fixed Deposit or Government Bonds This ratio is commonly used to compare the return stability of two mutual funds in the same asset class that have…
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How To Calculate Price To Earning (PE) Ratio Of A Stock
What is a Price To Earning Ratio Price to Earning, commonly referred to as the PE ratio, is a financial ratio used to check the fundamental value of a stock. A Price to Earning ratio will tell the investor how much he is willing to pay for the business to earn Rs. 1/- from it.…
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What Is The Risk Involved With REIT Investment
Introduction to REIT Real Estate Investment Trust, or REIT, is an organization that gathers cash from investors and invests them in the construction and ownership of real estate buildings on their behalf. Before starting off with the all the risk factors involved, do consider reading my blog on 7 Reasons Why REIT Are Excellent Investment…
