Price to book value is a ratio tha helps an investor find out if a stock is under valued or over valued. When used in conjunction with the PE ratio, it can help investors identify stocks that can make them rich.
Of the roughly 200 stocks that are traded in both the spot and futures markets on the major exchanges in Mumbai, 40 have a price-earnings ratio of more than 40.
Second-tier NBFC stocks are trading at 24.4x their trailing earnings, which is nearly twice their 15-year average of 13.9x
Clearly then, when buying a share, we should calculate whether its price is justified by what the company will earn in the future.
Investors are willing to bank on growth and value shares at higher multiples
Having cut eight deals last year, the $1.3 billion pharma major Ranbaxy probably has the sharpest negotiating skills in the business.
Picking a good stock is combination of two things: you want to pick a well-run and profitable company but you also want it at a good price. Here's how you can use PE and PEG ratio to pick good stocks.
Higher growth justifies current run-up, say experts.
The Finance Minister P Chidambaram on Thursday said the benchmark Sensex crossing 8000 level was not a cause for "worry or concern" but advised investors to take informed decision.
The markets hitting the lower circuit on Monday has come as a boon to investors to grab shares, say analysts.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
"The 21,000 level is meaningless. In the past five years, earnings have grown 40 per cent. One should look at the P/E. We are very positive on the market despite elections being around the corner," says Milind Barve MD, HDFC AMC.
The Finance Minister P Chidambaram on Monday asserted that "no scam was in the offing" as made out in certain sections with the Sensex surging towards the 8,400 mark.
The Indian indices also offer one of the lowest dividend yields.
If you want his advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Mutual Fund Query', along with your name, and Omkeshwar will offer his unbiased views.
Now that everyone on the Dalal Street is 'revising' the target for the benchmark BSE-30 upwards, especially after a good Budget, the premise of the same has to be questioned.
Let us find out which are the top five sectors that are a favorite with investors these days and the likely reasons behind the same.
To become an algorithmic trader, you need three things: Knowledge of financial markets, quantitative skills, and coding skills, suggests Nitesh Khandelwal.
While there is inherently nothing wrong with investing in an IPO, the decision to invest in one should be triggered by its ability to fill a gap in the investor's portfolio.
'To which brother will the senior Reliance executives be loyal to is the question. But it's too early to tell, says Ramesh Shrichand Damani.
Apart from the price-to-earnings (P/E) ratio, another parameter that is commonly used to value stocks is price-to-book value (P/BV). Let us take a look at it.
Investors need to understand and keep in mind how interest rates and the stock markets are related in order to make informed decisions.
Mahesh Nandurkar, executive director and India Strategist at CLSA, talks to Puneet Wadhwa ahead of their 21st India Forum on his interpretation of how the markets have played out over the past few months, the road ahead, and his sector preferences in this backdrop.
'Equities are not cheap; I need to buy at levels I am not comfortable with; I need to 'create' a rationale about some stocks we are buying into; we have no clue about the prospective earnings of sectors or companies; most of our 'buy' reports are based on a nebulous understanding of the future; on most occasions the profits we project do not materialise.'
In an interview to Vogue, Cara Delevingne speaks about finding love and coming to terms with her sexuality.
Bajaj Auto chairman Rahul Bajaj said on Wednesday that plans are afoot to demerge the company, which is India's second largest two-wheeler maker, into two separate companies.
Spread investments in equities, bonds, gold and cash to tackle volatility advise Nitin Singh, MD and head, and Vinay Joseph, director, investment strategy, Standard Chartered Wealth Management, India.
FA Cup: Arsenal end Lincoln's adventure
I don't think anything dramatic will happen post-2005 when there will be a change in patents from process to products.
Higher growth, reform bets have boosted returns but leave limited room for error.
As the last journey of the five jawans martyred in the Pakistani attack in Poonch began from Jammu, Army Chief Gen Bikram Singh on Wednesday laid wreaths on their bodies.
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