Category: Investment Decisions

Tobin’s Q / Q Ratio

Tobin’s Q ratio is a popular method of estimating a stock’s fair value and can be practically used by market participants to make informed decisions. It is also known …

Portfolio Management

For understanding portfolio management (PM), it is important to understand the term ‘portfolio’, meaning of PM, who is a portfolio manager, what does PM service involve, classification of PM …

Rule of 72

‘Rule of 72’ is a user-friendly mathematical rule used to quickly estimate the ‘rate of interest’ required to double your money given the ‘number of years’ of investment and …

Time Value of Money

The term ‘Time Value of Money (TVM)’ implies that there is a connection between ‘time’ and ‘value of money’. This concept can be explained by a simple question – …

Equity Valuation Methods

Equity valuation methods can be broadly classified into balance sheet methods, discounted cash flow methods, and relative valuation methods. Balance sheet methods comprise of book value, liquidation value, and …