Investing in SGX stock market? Definitely you will require the strong fundamental analysis of stocks. When it comes to fundamental analysis, it’s about analyzing the financial statements & annual reports to know the company’s right market value.
As fundamental analysis is an essential element to follow in stock trading, investment also comprised of stock values that comes under fundamental analysis. In addition, below are the stock values mentioned which should be taken into consideration.
Price-To-Earnings Ratio (P/E):
- The newbie’s in the stock trading usually faces the loss factors as they are unaware of when to apply correct strategy. Therefore, Market (PE) methodology is the useful stock signal that can be implemented for investing at the précised t level of investment.
- In fact, the market never falls below the level, (PE=10) & even if it goes down, it bounce above the 10 PE and extend up to 25 PE.
- Therefore, it’s beneficial to invest at level 10 and sell it about 25 PE. It’s recommended to compare the PE ratios between similar industries.
- As every company have their different growth prospects, investors should avoid comparing between high PE & low PE. In addition, getting right Stock picks would be beneficial to know the right value of stocks.
Price-to-Book Ratio (P/B):
- The price-to-book ratio exhibits the company’s value, if price of the stock falls or if sold at present day.
- The booking value is comprised of bonds & stock holdings. Movement in the booking value may take place as stock price moves up & down.
- In order to determine the company’s value, it’s good to have SGX Stock picks that will help to show you the market ratio price of company’s share.
The PEG Ratio:
- The historical growth rate of company’s earning represents the Price to Earnings growth. The calculation of PEG is performed by dividing PE ratio of a company by the growth rate of its earnings.
- As the value of PEG ratio becomes low, better the stock future earnings you will be getting. Comparing two stocks using PEG will show you how you are paying for the growth.
It’s essential for the investors to trade by analyzing the market trend and has all the ins & outs about the listed company with the technical & fundamental analysis.