Ashutosh Kumar 
The Face value, also known as par value, is the original price of a share or bond set by the issuing company. In the case of shares, it represents a fraction of the company’s share capital and has only a minimal impact on the market price, which is influenced by supply and demand. For bonds,
There are many methods to determine the value of shares. Investors are prepared to pay the market value to buy a share. You can think of book value as the net asset value of a stock. Many well-known investors use book value to determine the fair price of a stock, which ultimately helps them in
The price/earnings ratio (P/E ratio) compares a company’s share price with its earnings and helps investors to assess whether a share is overvalued or undervalued. It is calculated as market price per share ÷ earnings per share (EPS) and reflects market expectations. A high P/E ratio often signals growth potential, while a low P/E ratio
One advantage of investments is that they generate passive cash flow. Some companies share a percentage of their net profits with their investors. The distribution of ordinary shares is optional and yields on the market are relatively low. However, there is a method by which investors can achieve a consistent and high return. Let us
Earnings per share (EPS) is a financial indicator that shows investors whether the company is profitable. EPS is calculated by dividing a company’s net profit by the number of shares outstanding. Savvy investors take a company’s earnings per share into account when making investment decisions. Understanding how it affects stock selection can help you make
The market capitalization, or “market cap,” is the value of a company’s publicly traded shares multiplied by its current share price. According to their market caps, companies are classified as small-cap, mid-cap, and large-cap, with each category presenting varying levels of risk and growth potential. The market cap of a company does not directly affect