Prajna Capital - An Investment Guide

Look for Stocks with Earnings Growth Companies that show a consistent growth in earnings make attractive investment candidates for stock investors. Use R&D Spending in Evaluating Stock Research and development is important to every company, since that's where new products and services are created. Price Earnings Ratio - How P/E is Calculated The Price to Earnings Ratio is one of the most important numbers analysts look at to understand how the market values a stock. Beating the Stock Market - Why you may want to Judge your Stock Investments Differently Beating the market with your stock investments may not be the best goal for your portfolio. PEG - How PEG is Calculated PEG ratio provides investors a way to calculate how much future earnings growth is going to cost based on the stock's P/E and projected earnings growth rate. Price to Sales Ratio - How to Calculate the P/S The Price to Sales ratio is a tool for evaluating companies with no earnings that looks at how the ma...

Evaluation of stock is done with Fundamental Analysis Tools. Fundamental Analysis Tools - These are the tools of fundamental analysis. Fundamental analysis relies on several tools to give investors an accurate picture of the financial health of a company and how the market values the stock. What is an Economic Moat An economic moat protects a company from competitors by creating obstacles for entry into the market. A Good Company with a Bad P/E A good company can be a risky investment if you pay too much for it. The P/E is a good tool for a rough idea about a stock's value. Why Free Cash Flow is so Important Free cash flow is one of the most important numbers you need to know about a stock. It will help you determine a fair price for the company's stock. Earnings Per Share - How to Calculate EPS Earnings per share or EPS is one way to compare companies, but it does not tell you about market value. ROA is a Leading Measure of Company's Efficiency Return on Assets is an imp...