How to evaluate a stock
Financial ratios are important in evaluating the stocks. The two important steps in evaluating stocks: · Evaluation of Business Health · Evaluation of stock’s price Financial ratios fall into two broad categories :- 1. Ratios for Price Valuation a) PE ratio b) PB ratio c) PEG ratio d) Dividend yield 2. Ratios for Profitability check a) RoCE ratio Steps in evaluating the stocks 1. Prepare a list of of top stocks 2. Calculate following the values for each of the stocks a) Market cap b) ...