In simple terms 'Value Investing' means buying a stock, or indeed a business, at less than its intrinsic value.
The parameters that I have chosen include:
1. ROE and / or ROC of more than 15%
2. PE ratio less than 13%
3. Dividend yield more than 3%
4. Debt to Equity ratio of less than 1 (this parameter is not applicable for banking / financial companies)
5. Price to Book Value ratio of less than 3.5
6. Historical Growth in EPS (over last 10 years) > 7%
7. Net Margin ratio greater than 1.2 times of industry average
- Warren Buffett Watch
Showing posts with label Value investing. Show all posts
Showing posts with label Value investing. Show all posts
Saturday, May 2, 2009
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