Important Ratios to analyse before investing in Stocks.

Important Ratios to analyse before investing in Stocks.

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Created By Admin Last Updated Mon, 10-Aug-2020

The stock market refers to the collection of markets and exchange where we can buy, sell and issue share through direct investment. Investing in share need lots of analysis before taking decision. This article is helpful and extremely useful for any investors before choosing shares and wants to invest in stock market. Please find below mentioned ratios to be calculated before investing in shares:-


(a)    Price Earning Ratio

(b)    Comparing Consolidated Balance Sheet

(c)     Book Value Per Share

(d)    Enterprise Value

(e)    Dividend Yield Ratio

(f)      Profit After Tax

(g)    Promoters holding Ratio

(h)    Debt Ratio

(i)      Asset Turnover Ratio

(j)      Cash Conversion Ratio

(k)    Bonus Issue

(l)      Cash Flow Statement

(m)  Net Interest Margin

(n)    Return on Asset Ratio

(o)    Quick Ratio

(p)    Foreign Institutional Investor Ratio

(q)    Earning Per Share

(r)     Valuation of Share

(s)     Fair Value per Share

(t)     Asset Turnover Ratio

Thus, above are few tips to be checked before investing in share.