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Lum Jun Xiong
25 Aug 2020
Banking and Finance at Nanyang Business School
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Hello! Here are some of the financial ratios that you may want to look at when deciding which stock to buy!
1) Price/earnings ratio
The P/E ratio would be able to tell you the dollar amount that an investor can expect to invest in a company in order to receive one dollar of the company's earnings. It will also be able to tell if a company's stock is overvalued or undervalued.
2) Beta
The beta is used to measure the volatility of a company's stock. A beta value of more than 1 is considered high which means that it is likely to be of high risk. While any value lower than 1 would be considered low, meaning that it is likely to be a low risk.
3) Dividend
Looking at the dividend rate may also be a good idea if you are looking for a stock that will enable you to make money without constantly watching the stock market.
Hope this helps!
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Ruzaini Rashid
25 Apr 2019
Blogger at Theasiancontrarian.com
I would recommend developing a framework on how to identify an ideal investment based on your risk p...
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Business Model is important. How the company makes money is what drives the stock price. And the potential growth of the company and the industry its in. Other than business model, you can analyse its cashflow as cash is king. It tells you a better story which businesses is making money in terms of cash.