Archive for the 'Analyzing Annual Reports' Category
Whilst analyzing the annual reports of companies, can we spot what are so called growth companies?
Let’s look at different interpretation of growth companies from the view point of the following two great investors:
Benjamin Graham:-
considers it as a company that has performed better than the industry average over a period of years and is expected to […]
In earlier article, we have looked at the quality of earning as this forms an important criteria for investing in a company.
So what next? Of course, we need to mention the quality of Management. Do you know that it’s not only the company’s performance that is of concern by investor! Incidentally, in the 2007 Survey […]
Earlier article mentioned about cash flow statements are reliable whilst earnings can be manipulated by creative accounting/fraud.
This article deals with another aspect of earning which is the quality of earnings.
As investors or analysts the atttractives of an investment in a company is simply the quality of earnings.
Quality of earning really depends upon subjective/qualitative consideration rather […]
Earlier, the market/book ratio has been mentioned now we look at another useful market based ratio which is known as the Market value added ( MVA).
MVA is the difference between the market value of the company and the total capital invested in the company.
The formula of MVA is =
market capitalization ( number of equity shares […]
One of the essential ratio to investors and analysts is the market to book ratio.
This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet.
The formula is = market price per share/book value per share.
The purpose of this ratio is to indicate […]
