Deposit.redaksinet.com – As a candidate of investors in the capital market, some of the methods and strategies that really should be known and then applied to select the stock in the right company. Accuracy there is in some sort and select the stock before it is put into a portfolio that can generate the promise of profits for investors.
Select the share price alone is not enough. Smart Investors should do the valuation fundamental to the selected stock is not the result of fried deep, but more than the quality indeed. To be able to read outlook from the publisher, you can use the six southwest important for fundamental analysis in choosing the right stocks that:
1. The ratio of the earnings Per Share (EPS)
The ratio of the first to stock assessment is the EPS or earnings per share. EPS ratio increased and growing, then the company’s performance the better. This condition occurs because of the possibility of huge sales and profits continue to grow.
But on the contrary, if the EPS showed a decrease, then the company’s performance is not too good and profit as well as the amount of sales suffered a setback. The growth of the EPS ratio is 10 percent to 20 percent per year. Do not forget to pay attention to the stability of the West. Therefore, You should look for companies with a ratio earnings per share (EPS) increased from time to time.
2. Price earnings ratio (PER)
The ratio is important in choosing a stock is the ratio of price earning (PER). The ratio between stock prices and corporate profits. One calculation per benefit from the publisher, so if You already know each publisher, then You can determine whether the stock price makes sense or not real is not only based on estimates only.
There are two types of ratio PER which can be selected and used in determining the stock A Trailing and forward PER.
Follow the PER to compare the market price of the stock per the calculation of the date of the per Share (EPS) last year, so the profit is the profit that will be realized (suffix).
Meanwhile, the front part of the per to compare the stock price at a certain date with profits estimated or projected (forward) until the end of the year. Projected earnings full year Benefits are not yet aware of everything.
By utilizing the ratio of PER when choosing a stock, investors can determine the length of time required to get back the capital that has been issued.
3. The ratio of price to Book Value (PBV)
If the ratio of per focuses on the acceptance of the company’s revenue, the ratio of price to Book Value (PBV) visible side of the value of the equity of the company. Therefore, the PBV can be determined as a ratio compared with the value of the stock market (stock market value) against the book value per share per share per share (the value of the shares when the stock is sold for the first time to investors).
The ratio of the PBV is very useful, especially in the stock valuation in the financial industry such as Banks, Financial Institutions, Securities Firms, and insurance. This is because as much as 90 percent of the assets of the company in the financial sector in the form of cash, securities, and bills.
For example PBV two times, it means that the stock price has increased by two times compared to when the money was planted in the company.
Share with PBV lower than the average of other companies in the same industry are usually in demand by investors because PBV low can be an indicator to look for stocks that are cheap or less. On the contrary, high PBV may be triggered by the market price is too high, so do further analysis.
Usually a company that is not a problem have a ratio of PBV in the upper part. But things are different on the issuing bank because the greater the value of market capitalization that the higher the ratio PBV paid by the investor. So, the prospects of the issuer and preferred by many investors, the higher the stock PBV.
4. The ratio of return on equity (ROE)
Furthermore ,in the selection of the need to pay attention to the ratio of return on equity( ROE), which is the ratio between the net to total equity or equal to the value of EPS divided by the ratio of PBV. The ratio of the fourth, this is one of the parameters of income or revenue that can be obtained by the owner of the company (shareholders) in the investment of their funds in the specific company.
ROE can show to investors about the ability of capital owned by the company’s own (equity) to generate a net profit, profit after interest, tax, or so-called income after interest and taxes. In short, the ratio of ROE reflects the ability of the company or the issuer in managing equity.
ROE North is also an important indicator to know how efficient a company is run. As an example of a company is 20 percent, then every $ 200 of their own capital invested in the company is capable of providing a net profit of Rp 40.