Two companies with the same P/E are rarely the same bargain. This level adds what separates them: how fast profit is growing and whether the growth is real cash, how steady the record is, who owns the shares, and how much risk comes with the return.
Basics · Size, sector and where it trades. Start here to narrow the market to companies you can understand.
The top level of NSE's own four-level industry system, such as Financial Services or Commodities.
The second level of NSE's industry system, one step narrower than NSE macro.
The third level of NSE's industry system.
The narrowest NSE bucket, like Two Wheelers or Paints.
Business Model · Built from each company's annual report, with every statement checked against the filing.
How many rules can directly change this company's earnings: price caps, tariffs, commission limits, capital requirements and the like.
Find companies whose card names a particular regulator, such as RBI, SEBI, IRDAI or TRAI.
How much of sales come through the single biggest channel or customer type the company discloses.
Search what the company says its business is sensitive to: interest rates, crude oil, monsoon, the rupee and so on. Type / for OR.
Is It Cheap? · A great company can still be a poor buy at the wrong price. These compare the price with profits, sales, cash and the company's own history.
P/E ÷ yearly profit growth (%). It adjusts the P/E for how fast profits are growing.
Enterprise value ÷ EBITDA. Enterprise value is market cap plus debt minus cash: the price of the whole business. EBITDA is profit before interest, tax, depreciation and amortisation.
Where the company's P/E ranks among its sector peers: 0 is the cheapest, 100 the most expensive.
Where EV/EBITDA ranks among sector peers: 0 is the cheapest, 100 the most expensive.
Market cap ÷ yearly sales.
The same number as price / sales: market cap ÷ yearly sales.
Market cap ÷ cash generated by the business's day-to-day operations in a year.
Enterprise value ÷ yearly sales. Like price / sales, but it counts debt and cash too.
Where EV / sales ranks among sector peers: 0 is the cheapest, 100 the most expensive.
Operating profit ÷ enterprise value, as a percentage. It's the P/E turned upside down, with debt counted.
The yearly sales growth the market is betting on at today's price.
Today's P/E compared with the company's usual P/E over the last 5 years. Negative means cheaper than usual.
Today's P/E compared with the company's usual P/E over 10 years. Negative means cheaper than usual.
Today's P/B compared with the company's usual P/B over 5 years. Negative means cheaper than usual.
Is It Well-Run? · Returns on capital show how much profit the business makes from every rupee put into it.
Average RoCE over the last 10 years.
A 9-point health checklist: is profit positive and rising, is cash flow strong, is debt falling, are margins and efficiency improving? One point for each pass.
A formula from the 1960s that estimates the risk of a company running into financial distress in the next couple of years.
Sales ÷ total assets: how many rupees of sales each rupee of assets produces.
How much yearly sales growth jumps around. Lower means steadier.
Where RoCE ranks among sector peers: 100 is the best in the sector.
How much the Piotroski F-score rose or fell since last year.
How much yearly RoCE swings over 10 years. Lower means steadier.
Profitability · Margins show how much the company keeps after paying its costs.
Free cash flow ÷ sales: real cash left from each ₹100 of sales after paying to maintain and grow the business.
Where operating margin ranks among sector peers: 100 is the highest.
Average net margin over the last 10 years.
How Fast Is It Growing? · Growth in sales and profit over different periods, from the latest quarter to 15 years.
How fast sales grew each year, on average, over the last 5 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast sales grew each year, on average, over the last 7 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast sales grew each year, on average, over the last 10 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast sales grew each year, on average, over the last 15 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast profit after tax grew each year, on average, over the last 5 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast profit after tax grew each year, on average, over the last 7 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast profit after tax grew each year, on average, over the last 10 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast profit after tax grew each year, on average, over the last 15 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast earnings per share grew each year, on average, over the last 3 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast earnings per share grew each year, on average, over the last 5 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast earnings per share grew each year, on average, over the last 7 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
How fast earnings per share grew each year, on average, over the last 10 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
5-year profit growth minus 10-year profit growth. Positive means profits are growing faster lately than over the decade.
Whether quarterly sales growth is speeding up, steady or slowing.
Whether quarterly profit growth is speeding up, steady or slowing.
How fast earnings per share grew each year, on average, over the last 15 years. CAGR is the steady yearly rate that gets you from the starting number to today's.
Track Record · Streaks and bad years tell you how dependable the business has been.
The biggest fall in yearly profit from a previous high, over the last 10 years.
Real Cash Earnings · Profit is an accounting number. Cash is what actually lands in the bank.
Free cash flow ÷ market cap, as a percentage. 5% means ₹5 of free cash a year for every ₹100 of company value.
Capital spending ÷ sales: how much of each ₹100 of sales goes into factories, machines and other long-term assets.
Days between paying for materials and getting paid by customers: inventory days + receivable days − payable days.
Days sales outstanding: on average, how many days customers take to pay.
Days payable outstanding: on average, how many days the company takes to pay its suppliers.
Days inventory outstanding: how many days of stock sit in the warehouse before being sold.
Debt Check · Borrowing helps a business grow, until a bad year makes the interest hard to pay.
Debt minus cash, divided by yearly EBITDA: roughly how many years of operating profit it would take to pay off the debt.
Total assets ÷ shareholders' equity. Higher means more of the assets are paid for with borrowed money.
Average debt-to-equity over 10 years.
Yes when both bankruptcy models flag distress at the same time.
Past Performance · Price returns over different periods. Useful context, never a forecast.
How much the share price grew each year, on average, over 3 years, not counting dividends.
How much the share price grew each year, on average, over 5 years, not counting dividends.
How much the share price grew each year, on average, over 7 years, not counting dividends.
How much the share price grew each year, on average, over 10 years, not counting dividends.
How much the share price grew each year, on average, over 15 years, not counting dividends.
How Risky Is It? · How much the price swings and how far it has fallen before.
How much the stock returned above or below what its market risk (beta) would predict.
How much the price swung each year, on average, over 5 years.
How much the price swung each year, on average, over 10 years.
The biggest fall from a peak over 22 years. It captures the 2008 crash for stocks listed that long.
Who Owns It? · Owners, foreign funds and mutual funds, and whether their stakes are rising or falling.
How much the number of shares changed in a year. Negative means a buyback, so your slice grows. Positive means new shares were issued, so your slice shrinks.
How It Spends Money · Whether the money the company puts back into the business pays off.
Sales ÷ fixed assets like plants and machinery: how much the factories and equipment produce.
How much total assets grew in the year.
Can It Stay Ahead? · Signs of a lasting edge: steady margins and years of high returns.
How much gross margin swung over 10 years. Lower means steadier.
Strong, moderate or weak, based on how steady margins stay when costs move.
Valarth's label for the kind of business model, so you can compare like with like.
Beating The Market? · Compares the stock with the Nifty 500, its sector and a fixed deposit.
How much the stock beat or lagged the Nifty 500 index over 3 years.
How much the stock beat or lagged its sector over the last year.
Where the stock's 6-month price move ranks against all others: 1 is the strongest.
Something Happening? · Turnarounds, buybacks, demergers and where the price sits in its yearly range.
Yes if 3-year sales growth is more than twice the 5-year rate: growth has recently sped up.
How much net margin changed over 3 years, in percentage points.
Yes if the company split off a business into a separate listed company in the last two years.
Is It Trustworthy? · Forensic checks for accounts that look better than the business really is.
Yes when the Beneish M-score is above −1.78 even after setting aside fast sales growth, which can trigger the score on its own.
Joel Greenblatt's ranking: companies scored on both earnings yield and return on capital. 1 is the best combination.
Growth-Stage Metrics · Measures that work before profits arrive.
The same number as EV / sales: enterprise value ÷ yearly sales.
Enterprise value ÷ gross profit.
Sales growth % plus EBITDA margin %. A test borrowed from software investing: the two together should reach 40 or more.
The same number as Growth the price implies: the yearly sales growth today's price assumes.
How much EBITDA margin changed over the last four quarters, in percentage points.
Sales growth ÷ cost growth. Above 1 means sales are growing faster than costs.
For companies burning cash: how many quarters their cash would last at the current burn rate.
Yes when foreign funds own under 5% of the company but have been adding.
Of all the 3-year windows in the stock's history, the share in which it gave a positive return.
Banks and Lenders · A bank's raw material is other people's money, so the ratios that judge a factory misread it. These are the figures that matter for banks, NBFCs and housing finance companies: what they earn on lending, how many loans have gone bad, how well they are cushioned against losses, and how cheaply they fund themselves.
The share of a lender's bad loans that it has already set money aside for.
What a lender charged against profit in the year for loans expected to go bad, as a share of its average loan book.
How many rupees a lender spends on staff, branches and technology to earn ₹100 of income.
A lender's capital as a share of its loans and other assets, after weighting each asset by how risky it is. Also called CRAR.
How many rupees of assets a lender holds for each rupee of its shareholders' money.
Our Valuation · Valarth values each company with several models and compares the result with today's price and with the company's peers. These figures say what that work concludes and how much weight it can bear.
The P/E divided by the company's earnings-per-share growth over the last three years, worked out from the stored accounts.