Important Tips
1. Do not be guided by astrological predictions on share prices and market movements.
2. Do not invest based on market rumours or unconfirmed or unauthentic news.
3. Do not get carried away by unrealistic advertisements promising
4. Do not make investment decisions on the basis of implicit/explicit promises made by
anyone.
5. Do not be unduly influenced by indicative returns.
6. Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.
Important financial ratios for fundamental analysis:
1. Book Value Per Share =(Equity Share Capital + Reserve)/Total No. of Equity Shares
2. Cover=Earnings Per Share (EPS)/Dividends per Share
3. Earnings per Share (EPS) =Profit after Tax(PAT)Preference Dividend}/Total No. of
Equity Shares
4. Earnings Yield (%) =(Earnings Per Share (EPS)/Market Price of Share)x 100
5. P/E Ratio= Market Price of the Share/Earnings per Share (EPS)
6. P/BV Ratio=Market Price the of Share/Book Value of the Share
7. Yield (%)= (Dividend per Share/Market Price per Share)*100
1. Do not be guided by astrological predictions on share prices and market movements.
2. Do not invest based on market rumours or unconfirmed or unauthentic news.
3. Do not get carried away by unrealistic advertisements promising
4. Do not make investment decisions on the basis of implicit/explicit promises made by
anyone.
5. Do not be unduly influenced by indicative returns.
6. Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.
Important financial ratios for fundamental analysis:
1. Book Value Per Share =(Equity Share Capital + Reserve)/Total No. of Equity Shares
2. Cover=Earnings Per Share (EPS)/Dividends per Share
3. Earnings per Share (EPS) =Profit after Tax(PAT)Preference Dividend}/Total No. of
Equity Shares
4. Earnings Yield (%) =(Earnings Per Share (EPS)/Market Price of Share)x 100
5. P/E Ratio= Market Price of the Share/Earnings per Share (EPS)
6. P/BV Ratio=Market Price the of Share/Book Value of the Share
7. Yield (%)= (Dividend per Share/Market Price per Share)*100
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