Category Archives: Fundamental Analysis

Measures of Value Creation – Economic Value Added & Market Value Added

Economic Value Added

Financial management seeks to create wealth or value for shareholders since shareholders are interested in knowing what return they will receive on their investment. Thus, value creation for shareholders is undoubtedly a corporate objective for any company. What is Economic Value Added & Market Value Added? The ability of firms to manage, utilize, and allocate […]

What is Liquidity Ratio? How to Analyze a Business Using It

Liquidity Ratio

Understanding the nature and growth of the business and measuring its profitability is indispensable for any investor to earn returns on his investment from shares to create wealth. Business analysis i.e., analyzing company performance through its products & services, and fundamental analysis i.e., using balance sheet details to measure the performance of the company are […]

Stock Split – Meaning, Effect, Examples and More…

Stock Split

Apple and Tesla companies in the US have made big news in the stock market. Apple has announced a 4-for-1 stock split and Tesla has declared a 5-for-1 stock split rallying companies’ share prices in the US stock market. Even in India recently Marine Electric, HDFC Nifty ETF, Bannari A SPG, SVP Global, Hazoor Multi […]

What is Bonus Shares?

Bonus Shares

Even in the severely contracted economy due to the pandemic COVID-19, Various companies like Hatsun Agro Products, Infosys Ltd, Vishal Fabrics, Global Education, etc. declared bonus shares in the year 2020. Always Bonus issues create a wave of excitement in the stock market. It normally steers bull run. This article provides detailed information on basic […]

Methods for Business Valuation – Cost Method, Market Value & Discounted Cash-Flow Method


Valuation of a business is the process of determining the economic value of owners’ interest in a business. It is the present value of a business on that particular date. Various purposes of valuation include the sale of business, mergers, and acquisitions, the fundraising process, establishing a new partnership, or even divorce proceedings. It assesses […]

21 Financial Ratios Every Investor should know

Financial Ratio

Financial Ratios may be considered as one of the major tools in the stock market. They are used to analyze potential investments. Everyone from beginners to absolute experts should use financial ratios to analyze stocks of their interest. But, what are financial ratios? How to analyze them? Shall some be given preference? What are ideal financial […]