If you compare Indian stock markets to global markets both developed and developing, Indian stocks are trading at a much higher valuation. Consider this, the ‘MSCI India Index’ which had grown at par with the ‘MSCI emerging Markets Index’ from 2004 to 2014, is today...
By now all of you would have looked at a gazillion charts and tables trying to relate Nifty’s 10-20 year average PE and comparing that to where we are today. Naturally, we have been in a very very expensive market for far too long. Markets have been running up with no...
Fortunate are those who never studied the relation between stock prices and corporate earnings. Anybody who did would certainly have missed out on this year’s stock market rally. The purpose of writing this article is to analyse what led to the market rally followed...
In this article, I will be discussing the various stock valuation methods used to arrive at a fair value or the target price for the company. To illustrate this, I will take Reliance Industries to explain the different stock valuation methods. [1] Stock Valuation...
Given the benefits of compounding, good quality large cap stocks are the best way for investors to get multibagger returns over a longer period of time. If an investor would just buy shares of established large cap stocks and hold them for a long period of time, the...