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Episode 9- Introducing Edge model for effective Stock Investing !!
In this 9th session, Mr Vivek Bajaj introduces the edge model, a framework to help investors rate a company. He will cover the different types of ratios importance of valuing a company. Watch the whole video to determine the financial health of a company which can be done by analyzing the ratios.
Mainly six types of financial ratios have been discussed in this video. They are:
- Return.
- Efficiency.
- Growth.
- Solvency.
- Cash Flow.
- Valuation.
What are Growth Ratios?
These ratios measure the rate of growth of the company & help us identify the pace at which it is growing. These include:
- Net Sales Growth.
- EBITDA Growth.
- Net Profit Growth.
- EPS Growth.
EV/EBITDA Technique
The enterprise value to EBITDA technique equals a company’s EV divided by earnings before interest, tax, depreciation & amortization. An under-valued company will have a low enterprise, whereas a high-enterprise multiple will reflect an overvalued company.
Also, by using the StockEdge application, Mr Bajaj has shown how to locate EV/Revenue, EV/EBITDA & P/E values in this video.
About Mr. Vivek Bajaj
The passion for data, analytics and technology is what makes Vivek Bajaj a financial market survivor. The journey as a market participant started in 2002 when the first trade was executed in the options contract of ITC. Life was simpler and easier during that time. Since then technology and Big data have taken over totally. As an early adapter to the complex tools, Kredent was formed to capitalise on the opportunities. He is co-founder of StockEdge and is committed to bring simplicity in the complex world of market data. He is a Chartered Accountant, Company Secretary and an MBA from IIM Indore. He is a part of various committees of exchanges and regulator and he has been an active contributor in the evolution of Indian Derivatives Market.
About this episode
In this 9th session, Mr Vivek Bajaj introduces the edge model, a framework to help investors rate a company. He will cover the different types of ratios importance of valuing a company. Watch the whole video to determine the financial health of a company which can be done by analyzing the ratios.
Mainly six types of financial ratios have been discussed in this video. They are:
- Return.
- Efficiency.
- Growth.
- Solvency.
- Cash Flow.
- Valuation.
What are Growth Ratios?
These ratios measure the rate of growth of the company & help us identify the pace at which it is growing. These include:
- Net Sales Growth.
- EBITDA Growth.
- Net Profit Growth.
- EPS Growth.
EV/EBITDA Technique
The enterprise value to EBITDA technique equals a company’s EV divided by earnings before interest, tax, depreciation & amortization. An under-valued company will have a low enterprise, whereas a high-enterprise multiple will reflect an overvalued company.
Also, by using the StockEdge application, Mr Bajaj has shown how to locate EV/Revenue, EV/EBITDA & P/E values in this video.
About Mr. Vivek Bajaj
The passion for data, analytics and technology is what makes Vivek Bajaj a financial market survivor. The journey as a market participant started in 2002 when the first trade was executed in the options contract of ITC. Life was simpler and easier during that time. Since then technology and Big data have taken over totally. As an early adapter to the complex tools, Kredent was formed to capitalise on the opportunities. He is co-founder of StockEdge and is committed to bring simplicity in the complex world of market data. He is a Chartered Accountant, Company Secretary and an MBA from IIM Indore. He is a part of various committees of exchanges and regulator and he has been an active contributor in the evolution of Indian Derivatives Market.
Other series by Elearnmarkets
Watch Mr. Vivek Bajaj introduce the basic concepts of trading and discuss the various stock market indicators.
All Episodes
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Episodes 1
Why Investing is extremely Important ???
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Episodes 2
How to beat your Personal Inflation ?
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Episodes 3
Three C's of Investing followed by Top Investors !!!
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Episodes 4
Impact of Income Tax on your Investments !
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Episodes 5
Decoding Indian Stock Market Universe!
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Episodes 6
Are you an Active or Passive Investor? Find out in this video!!!
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Episodes 7
Investors को Company के Financial Statements में क्या देखना चाहिए?
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Episodes 8
Quality Framework for analyzing any Company !!
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Episodes 9
Introducing Edge model for effective Stock Investing !!
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Episodes 10
360 Degree Analysis of Asian Paints !!!
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Episodes 11
360 Degree Analysis of Jubilant Foodworks !!!
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Episodes 12
360 Degree Analysis of Future Retail !
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Episodes 13
360 Degree Analysis of HDFC AMC
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Episodes 14
See this if you need a perfect Stock Portfolio!!
Other series by Elearnmarkets
Watch Mr. Vivek Bajaj introduce the basic concepts of trading and discuss the various stock market indicators.
