Day 2 - Kalash Share Market Training

2. Indicators:

1. EPS(Annu/TTM): Earnings per share in a fiscal year.

   No of Share = Paid Up Capital / 100

   EPS = Net Profit / No of Shares

2. P/E: Price / Earnings - investment amount to earn 1 Rs.

   P/E = LTP / EPS

   • Current earnings should not be less than previous earnings.

   • Value Stock vs Growth Stock ( Consider unique business ideas)

3. BVPS: Book Value Per Share

   • Types of Stock Price:

     i) LTP - too dynamic - affected by the crowd

     ii) Face Value (100) - too static

     iii) Book Value - real price per quarter

     Fare Rate = Book Value x ~ 1.5

4. ROE: Return on Equity = Profit / Equity

   • Sector-wise ROE is different

     i) For an insurance company- Net Earned Premium

     ii) Hotel/Cement - Revenue from operations

     iii) Bank - Cost of Funds, NPL

5. Scanner / Screener/ Filter:

   • Distributed EPS, Dividend Yield, PEG (Price to Earnings Growth)

Homework:

1. Filter commercial bank stocks better than average.

QnA:

1. EPS vs DEPS - Banking vs other sectors

2. Fundamental analysis for trading or investment.