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How do I start learning the stock market?

Topic: Stock TradingPublished September 13, 2019

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Earning per share shows the profitability of the company, as EPS means to ALLOCATE those who share the OUTSTANDING part of PROFIT. You must know that earning means profit, OR per share means one share, Earning per share means a share per profit, now if earning by share is increasing per year, then the profitability of the company is good, as the EPS of the company is increasing year by year. Now, how can we calculate earning per share, so let's see from an example, As the company's profit is 100 crore, or Outstanding shares 50 crore, to pay EPS here. 2 o (100 Crore / 50 Crore = 2) EARNING PER SHARE = PROFIT / OUTSTANDING SHARES Now, what are the outstanding shares, what is the issue that has been shared or the investor has, that means all the shares which are available in the market which are available for trade. If earning per share for fundamental analysis of stocks in the Indian stock market has been increasing since the last few years then it can grow even further and if we take this share then we can profit. Price to Equity Ratio (PE RATIO)rnIn FUNDAMENTAL ANALYSIS, PE ratio is more used to select STOCK, The use of PE ratio is to compare how cheap or how expensive the share price is, Higher PE means that the share price can be expensive or that the share price will not go much further, or it will go a little bit further. Higher PE If the share of the industry is less than the industry PE, then the share price can increase. Generally, PE in stock is less in the bear market, or PE is more in the bull market, If the PE ratio of the company does not increase on a yearly basis then it is possible that you will not get a good return. PE RATIO is related to earning per share, because to remove PE RATIO divide the CURRENT MARKET PRICE from earning per share, PE RATIO = current market price / earning per share Let's look at an example, Company's current market price rs. 100 ha, or EPS rs. 2 O, then PE PE here will be RATIO 50. If PE RATIO is high or you are thinking of taking share, then you have to keep in mind all the other terms of fundamental analysis of stocks in the Indian stock market, then you have to take a decision. Price to book valuernBook value is known from the balance sheet, book value means in simple account they are the asset of the company - liability = book value, Company asset = land, building, plant, machinery, etc. Company liability = all types of loans. To remove the book value, you take the equity share capital or retained earnings figure from the balance sheet for fundamental analysis, the total of both will be your book value, equity share capital + retained earnings = book value Now if you divide this total by the number of equity share, then you will get per book how much book value. equity share capital + retained earnings = book value / number of equity shares = book value per share If the share price is less than its book value then that share becomes attractive and you can think of buying it. But it has been seen that the share price of a company which is fundamentally strong is always higher than the book value, or it is around, then if the share price is less than the book value of the company, then you also have other terms of fundamental analysis. Should be checked before taking stock.

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