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...

This article explains how you arrive at the dividend yield of a share to determine its efficiency as an investment option Equity investors look for two types of returns - Capital appreciation, i.e., the increase in the market value of the shares, and Dividend income. Companies declare dividends on equity shares from the profits. The balance funds left after paying off all expenses is used to create reserves and declare dividends. Calculating dividend yield is important to calculate the true returns from an equity investment. Also, dividend yield helps analysts calculate the value of an investment, and whether it is good to invest in a particular stock. Dividend is declared on the par value of the shares. For example, a 30 percent dividend on a Rs 10 par value equity share means a dividend of Rs 3 per share. However, in case you have paid Rs 30 to acquire the share, the dividend is still payable on Rs 10. So, the dividend yield would be 10 percent only. Dividend yield is not equal...

At a time when stock markets zigzag, what would be the right investment arena? Corporate FDs or equities? THE sharp fall in the equity markets has changed a lot of things including India Inc’s fund raising plans. This, in turn, has changed investment avenues for retail investors. Till about a year ago, the only way for retail investors to participate in a company’s growth was to buy equities either in the secondary market or invest in primary issues (IPO) or rights issue. However, the primary market option currently is almost closed with the virtual drying up of the IPO market. Bearish sentiments and lack of investors’ confidence due to wild volatility, on the other hand, has decreased the participation of investors in the secondary market. In such a situation, India Inc is now approaching the potential investors through fixed deposit (FD) schemes. In fact, FD schemes are not new to India Inc. Earlier, every major company had an FD department and it was considered to be one of th...

Investors investing in equity shares look for two types of returns. 1) Capital appreciation - increase in the market value of the shares. 2) Dividend income - Companies declare dividends on equity shares from their profits. Funds left after paying off all expenses are used to create reserves and declare dividends. The dividend is declared on the par value of the shares. For example, a 10 percent dividend on a Rs 10 par value equity share means a dividend of Re 1 per share. Even if you have paid Rs 20 to acquire the share, the dividend is payable at Rs 10. So the dividend yield would be five percent and not 10 percent. Calculating the dividend yield is important to calculate the real returns from an investment. Also, dividend yield helps analysts in calculating the value of an investment, and whether it is worthwhile to make an investment in a particular stock. A high dividend yield may not always indicate a good investment as it may be wiped out by losses incurred ...