Friday 2 March, 2012

Evaluating a stock based on different perspectives

Evaluating a stock based on different perspectives

Different people evaluate a stock using different parameters. After all, if there is only one model of evaluating a company, the share prices would not fluctuate on a daily basis. At best, it will keep changing once in a few weeks or months.

While browsing the net, I came across this wonderful write up illustrating the extent to which valuation differs based on one's perspective.

Take a look:

What's impressive is that the author has described things in a language that's easy to understand for anyone with a basic understanding of finance.

Thanks, Sanjay Bakshi. What's important for you is to actually take a look at all those balance sheets that you'll start receiving in a few weeks from now - Perhaps you'll find some gems among them. And some junk. You'll be far better off by dumping the junk and deploying any surplus funds in the gems.

Take care!

Regards,

N


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