Though it is fundamentally incorrect to even compare prices of stocks, and this should never be done, yet in this study, for the purpose of educating investors, we have tried to make a comparison. If companies have to be compared to find if they are relatively cheap or expensive, investors should compare using price earning multiple (PE ratio), EV or EBITDA multiple, price to book multiple (PB ratio) or any other valuation matrix.
We have undertaken this study using data between 2010 and 2021. We selected top 2,000 shares sorted on the basis of market capitalisation and applied two filters:
Market capitalisation should be greater than Rs 100 crore. This filter ensures that we do not include those shares in our dataset which have very small market capitalisation and can be easily manipulated by the traders
Share should have return of equity (ROE) greater than 10 per cent in the year of selection as we assume that shareholders would refrain from investing in shares which do not generate minimum ROE of 10 per cent.
Denne historien er fra March 15, 2021-utgaven av Dalal Street Investment Journal.
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Denne historien er fra March 15, 2021-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
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U.S. Elections and China's Economy Hamper Commodities
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Mastering Investment with Information Ratio
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❝Technology is the new game-changer"
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What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
