Ratios to look before buying a share (Stock)
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Ratios to look before buying a stock (share) In this blog we will discuss about 8 ratios which plays a vital role in determining the intrinsic value of a stock. 1) Ploughback & Reserves Ratio-: The plowback ratio is a fundamental analysis ratio that measures how much earnings are retained after dividends are paid out. It is most often referred to as the retention ratio. The opposite metric, measuring how much in dividends are paid out as a percentage of earnings, is known as the payout ratio. 2) Book Value Per Share Ratio-: The book value per share (BVPS) is a ratio that weighs stockholders' total equity against the number of shares outstanding. In other words, this measures a company's total assets, minus its total liabilities, on a per-share basis. 3) Earning Per Share Ratio-: Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is calculated by dividing the company's net income with its total number of outst