Let us decode this metric.
Layman’s explanation to PE Ratio and how it works.
A long thread! Do Bookmark this for patient reading.
#investing #investors #PEratio
Let us decode this metric.
•How to decide what to buy?
oCase A: Case A: Fresh Apple vs Stale Apple
oCase B: Costlier Fresh Apple v/s Cheaper Fresh Apple
oCase C: Apple vs Orange
•How to read PE ratio
•How is PE Ratio misunderstood?
•When will PE Ratio not work?
Apple ‘A’ is fresh and juicy. Apple ‘B’ is clearly stale. Apple ‘A’ costs you ₹.20 while Apple ‘B’ costs you only ₹.10.
The answer would clearly differ from person to person. This decision is subjective. Different things have different utilities.
This is so relatable in stock market. Companies making different products and belonging to different industries can not be compared.
All the above cases so discussed can be linked to PE ratio.
PE ratio= Market Price/ Earnings Per Share (EPS)
In other words, it is nothing but the market price one is ready to pay for every rupee earned by the company per share every year.
A ‘Nestle’ must not be compared with an ‘Asian Paints’! The reason is what we discussed in ‘Case C’. ‘Apples’ and ‘Oranges’ are not comparable!
Investors can be misled if they use this metric in case of cyclical or seasonal stocks.
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Last week Hizbollah's finance institution Al Qard el Hasan was hacked by Spiderz. A group of people took that Data and tried to make sense out of it. Below are the findings
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Loans are provided to borrowers for gold deposits or other guarantees, to the association's members and to unsecured applicants.
AQAH had a carried forward loan balance of $450 million as of December 31, 2019. This balance has been increasing at a yearly rate of 13.4%.
AQAH laundered around $475 million in 2019 in the form of disbursed loans paid to more than 20,000 borrower accounts; mostly to borrowers with gold deposits.
Deposits accounts have been offered to 307,000 members of the association, 83,000 contributors as well as to 600 companies. AQAH closed 2019 with an overall depositors accounts balance of around $500 million.
https://t.co/eGLqvb28o5
Loans are provided to borrowers for gold deposits or other guarantees, to the association's members and to unsecured applicants.
AQAH had a carried forward loan balance of $450 million as of December 31, 2019. This balance has been increasing at a yearly rate of 13.4%.
AQAH laundered around $475 million in 2019 in the form of disbursed loans paid to more than 20,000 borrower accounts; mostly to borrowers with gold deposits.
Deposits accounts have been offered to 307,000 members of the association, 83,000 contributors as well as to 600 companies. AQAH closed 2019 with an overall depositors accounts balance of around $500 million.
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https://t.co/Kf7uVKekMd #Etymology #words
Another common #question:
What is the difference between “alias” and “pseudonym?”
As nouns alias means “another name; an assumed name,” while pseudonym means “a fictitious name (more literally, a false name), as those used by writers and movie
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