InvestorQ : Kaise Stock Analysis kiya jaata ha?
Mohammad riyaz made post

Kaise Stock Analysis kiya jaata ha?

Answer
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PK answered.
5 months ago


P/E Ratio
A common method to analyzing a stock is studying its price-to-earnings ratio. You calculate the P/E ratio by dividing the stock’s market value per share by its earnings per share. To determine the value of a stock, investors compare a stock’s P/E ratio to those of its competitors and industry standards. Lower P/E ratios are seen as favorable by investors.
Earnings Per Share
A company’s earnings per share show how efficiently its revenue is flowing down to investors. An increasing EPS is taken as a good sign by investors. According to NASDAQ, the higher a company’s EPS, the more your shares are worth, because investors seek to purchase a company’s stock when earnings are high.