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Showing posts with label PEG ratio. Show all posts
Showing posts with label PEG ratio. Show all posts

Sunday, August 24, 2014

Beginners guide to Stock market Investing

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The most important factor where beginners feel difficulty is to deduce a formula for finding the correct price of the stock. One should refrain for purchasing overpriced stock, but the question to answer here is : How a beginner find correct value of a stock?

Following important ratios of various stocks help in finding the correct price of the stock. Once an investor knows the correct value of a stock and purchasing it is in his/her budget, only then he should purchase a particular stock.

First of the most important value which an investor should know is that of PE Ratio which is ratio of Share Price/EPS(earning per share).


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