Valuation of shares


This query is : Resolved 

23 August 2013 What is the basis of a stock or share is being valued sound or good? Is it through the EPS method? If that is so, there are companies whose market value is 2.5 times or 3 times of the EPS, whereas there are companies which is having 45 times of EPS like NESTLE, page industries 43 times, BOSCH 30 times, oracle financial services 23 times of EPS and these companies are traded a lot in daily, whereas someother companies having 3times or 5 times of EPS doesn't trade much in the market. How to go about it as i am novice and planning to trade intraday(Rs1,00,000/- my share received from the share of ancestral property). Your valued suggestion will help me out to decide.

15 September 2013 it is not just EPS which decide price but there are lots of factors which affect share prices.

You can see that prices move sometimes 5-10% in a day. This is because of some news which may be +ve/-ve for company's future.

EPS talks about history and expected EPS and PE is more important in market.

You will be surprised, there are few companies who trade even below their Book Value. But still noone buys them.

Its better you invest in company which is long term good track record and also only with the intention of staying invested for longer period(atleast 6months). Dont change your view/opinion in 5-10min after buying shares.

Good luck


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details