📊 Top 100 Coins Performance in November, And An overheated funding rate indicates a pullback in December before a potential rise.
Tomorrow Finance Minister will introduce Banking Laws Amendment Bill 2024 in #LokSabha.
Key highlights: Amendments to
✔️ RBI Act, 1934
✔️ Banking Regulation Act, 1949
✔️ SBI Act, 1955
✔️ Banking Companies Acts (1970 & 1980 )
High action in Banking space likely
Key highlights: Amendments to
✔️ RBI Act, 1934
✔️ Banking Regulation Act, 1949
✔️ SBI Act, 1955
✔️ Banking Companies Acts (1970 & 1980 )
High action in Banking space likely
🚨🚨🚨 JUST IN : 🇺🇸 US government moved 10,000 #bitcoin💰 worth $963 million to Coinbase.
📊 Since #Bitcoin crossed $90K, liquidations have surged. With intense speculation about hitting $100K and Alt Season, exchanges are capitalizing on the volatility by liquidating leveraged positions.
Expect More Volatility So Use Low Leverage.
Expect More Volatility So Use Low Leverage.
💰 #Bitcoin crashed by $12,000, but altcoins are holding up well.
This suggests that altcoins may continue to grow. (Alt Season)
This suggests that altcoins may continue to grow. (Alt Season)
Determine if a Stock is Overvalued or Undervalued Using EV/EBITDA
---
What is EV/EBITDA?
The EV/EBITDA ratio helps evaluate whether a stock is overvalued or undervalued by comparing its enterprise value to operating profits.
Enterprise Value (EV): The total cost of acquiring a company.
Formula: EV = Market Cap + Debt - Cash
Think of it as the “true price tag” of a company.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of profit generated purely from operations.
Formula: EBITDA = Revenue - Operating Expenses
It shows how much the company earns before accounting for costs like taxes, depreciation, and interest.
---
Understanding EV/EBITDA
EV/EBITDA = EV ÷ EBITDA
This ratio answers: How many years of profit (EBITDA) will it take to recover the company’s true cost (EV)?
A High EV/EBITDA Ratio:
Indicates the stock may be overvalued compared to peers.
A Low EV/EBITDA Ratio:
Suggests the stock could be undervalued relative to the industry.
---
Breaking Down with an Example
Imagine you’re evaluating two cement companies:
1. UltraTech Cement: EV/EBITDA = 25x → Overvalued compared to the industry average (14x).
2. Star Cement: EV/EBITDA = 13x → Undervalued relative to the same industry average.
Here, the lower ratio of Star Cement indicates it might be trading at a fairer or cheaper valuation. However, ratios alone don’t tell the full story.
---
Why Use EV/EBITDA?
1. Holistic Measure:
Unlike the P/E ratio (Price-to-Earnings), EV/EBITDA includes both debt and cash, making it a more complete valuation metric.
2. Cross-Industry Comparisons:
It allows comparisons between companies of varying sizes within the same sector.
3. Focus on Core Operations:
EBITDA removes the effect of taxes, interest, and accounting expenses, focusing purely on operational performance.
---
Limitations of EV/EBITDA
While useful, EV/EBITDA has blind spots:
1. Ignores Capex (Capital Expenditures):
Industries needing heavy machinery or upgrades, like airlines, may not show the full picture.
2. No Future Growth Assessment:
The ratio reflects the present performance but ignores future earnings potential.
3. Maintenance Costs:
It works poorly for businesses with high repair or maintenance costs (e.g., transportation).
4. Inconsistency:
EV/EBITDA isn’t a standard accounting metric, leading to variations in calculation methods.
---
Should You Rely Solely on EV/EBITDA?
No. While EV/EBITDA is a powerful starting point, you should complement it with other financial metrics:
P/E Ratio: Price-to-Earnings for profitability.
Price-to-Book (P/B): Evaluating the stock’s value compared to assets.
ROE (Return on Equity): Efficiency in generating profits from shareholder investments.
---
Conclusion
The EV/EBITDA ratio is a versatile tool for stock valuation. It highlights whether a stock is undervalued or overvalued based on operational profits and enterprise value. However, combining it with other metrics and industry knowledge will give a more accurate and complete investment picture.
---
What is EV/EBITDA?
The EV/EBITDA ratio helps evaluate whether a stock is overvalued or undervalued by comparing its enterprise value to operating profits.
Enterprise Value (EV): The total cost of acquiring a company.
Formula: EV = Market Cap + Debt - Cash
Think of it as the “true price tag” of a company.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of profit generated purely from operations.
Formula: EBITDA = Revenue - Operating Expenses
It shows how much the company earns before accounting for costs like taxes, depreciation, and interest.
---
Understanding EV/EBITDA
EV/EBITDA = EV ÷ EBITDA
This ratio answers: How many years of profit (EBITDA) will it take to recover the company’s true cost (EV)?
A High EV/EBITDA Ratio:
Indicates the stock may be overvalued compared to peers.
A Low EV/EBITDA Ratio:
Suggests the stock could be undervalued relative to the industry.
---
Breaking Down with an Example
Imagine you’re evaluating two cement companies:
1. UltraTech Cement: EV/EBITDA = 25x → Overvalued compared to the industry average (14x).
2. Star Cement: EV/EBITDA = 13x → Undervalued relative to the same industry average.
Here, the lower ratio of Star Cement indicates it might be trading at a fairer or cheaper valuation. However, ratios alone don’t tell the full story.
---
Why Use EV/EBITDA?
1. Holistic Measure:
Unlike the P/E ratio (Price-to-Earnings), EV/EBITDA includes both debt and cash, making it a more complete valuation metric.
2. Cross-Industry Comparisons:
It allows comparisons between companies of varying sizes within the same sector.
3. Focus on Core Operations:
EBITDA removes the effect of taxes, interest, and accounting expenses, focusing purely on operational performance.
---
Limitations of EV/EBITDA
While useful, EV/EBITDA has blind spots:
1. Ignores Capex (Capital Expenditures):
Industries needing heavy machinery or upgrades, like airlines, may not show the full picture.
2. No Future Growth Assessment:
The ratio reflects the present performance but ignores future earnings potential.
3. Maintenance Costs:
It works poorly for businesses with high repair or maintenance costs (e.g., transportation).
4. Inconsistency:
EV/EBITDA isn’t a standard accounting metric, leading to variations in calculation methods.
---
Should You Rely Solely on EV/EBITDA?
No. While EV/EBITDA is a powerful starting point, you should complement it with other financial metrics:
P/E Ratio: Price-to-Earnings for profitability.
Price-to-Book (P/B): Evaluating the stock’s value compared to assets.
ROE (Return on Equity): Efficiency in generating profits from shareholder investments.
---
Conclusion
The EV/EBITDA ratio is a versatile tool for stock valuation. It highlights whether a stock is undervalued or overvalued based on operational profits and enterprise value. However, combining it with other metrics and industry knowledge will give a more accurate and complete investment picture.
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Estimating Stock Price Target Using P/E Ratio and EPS Growth.
To find the target of a stock, multiply the current P/E (Price-to-Earnings) ratio by the EPS (Earnings Per Share) growth percentage, then add the current P/E ratio.
For example:
If the current P/E ratio is 18 and the EPS growth is 40%, calculate:
(18 × 40/100) + 18 = 25.
The target P/E becomes 25, which can be considered valid for the next three months. This method works based on the assumption that growth in EPS supports an increase in valuation.
To find the target of a stock, multiply the current P/E (Price-to-Earnings) ratio by the EPS (Earnings Per Share) growth percentage, then add the current P/E ratio.
For example:
If the current P/E ratio is 18 and the EPS growth is 40%, calculate:
(18 × 40/100) + 18 = 25.
The target P/E becomes 25, which can be considered valid for the next three months. This method works based on the assumption that growth in EPS supports an increase in valuation.
20 Simple Rules for Investment Success
1. Focus on stocks with three years of earnings growth over 25%, return on equity above 17%, and accelerating earnings and sales.
2. Look for companies with recent quarterly earnings and sales growth of at least 25%.
3. Avoid cheap stocks. Invest in high-quality stocks priced above $15.
4. Learn to read charts to identify strong base patterns and determine the best entry points.
5. Limit losses to no more than 8% below your purchase price. Stick to this rule to avoid major setbacks.
6. Follow specific guidelines for when to sell and take profits during an uptrend.
7. Invest when the overall market is in an upward trend, and reduce investments when markets signal weakness.
8. Study market analysis resources to recognize key turning points in the market.
9. Focus on stocks with high overall ratings and strong price strength within their category.
10. Favor companies where management holds a significant portion of the stock.
11. Invest in stocks from leading sectors showing strength in the market.
12. Look for stocks with increasing interest and backing from major institutions.
13. Ensure the company has strong profit margins that are improving and among the best in its industry.
14. Don’t base your decisions solely on dividends or low price-to-earnings ratios.
15. Choose companies with innovative or superior products and services.
16. Invest in growing companies, especially those that recently went public and show potential.
17. Research companies that are buying back their shares or have new leadership.
18. Avoid trying to guess the bottom or buy during a downturn. Stay rational and avoid emotional decisions.
19. Determine whether the current market favors large-cap or small-cap stocks.
20. Analyze your past trades to learn from mistakes and refine your strategy for better results.
1. Focus on stocks with three years of earnings growth over 25%, return on equity above 17%, and accelerating earnings and sales.
2. Look for companies with recent quarterly earnings and sales growth of at least 25%.
3. Avoid cheap stocks. Invest in high-quality stocks priced above $15.
4. Learn to read charts to identify strong base patterns and determine the best entry points.
5. Limit losses to no more than 8% below your purchase price. Stick to this rule to avoid major setbacks.
6. Follow specific guidelines for when to sell and take profits during an uptrend.
7. Invest when the overall market is in an upward trend, and reduce investments when markets signal weakness.
8. Study market analysis resources to recognize key turning points in the market.
9. Focus on stocks with high overall ratings and strong price strength within their category.
10. Favor companies where management holds a significant portion of the stock.
11. Invest in stocks from leading sectors showing strength in the market.
12. Look for stocks with increasing interest and backing from major institutions.
13. Ensure the company has strong profit margins that are improving and among the best in its industry.
14. Don’t base your decisions solely on dividends or low price-to-earnings ratios.
15. Choose companies with innovative or superior products and services.
16. Invest in growing companies, especially those that recently went public and show potential.
17. Research companies that are buying back their shares or have new leadership.
18. Avoid trying to guess the bottom or buy during a downturn. Stay rational and avoid emotional decisions.
19. Determine whether the current market favors large-cap or small-cap stocks.
20. Analyze your past trades to learn from mistakes and refine your strategy for better results.
*Market Update: Key Reasons Behind Today's Sharp Market Downturn*
The stock market witnessed a significant crash today, with the Sensex and Nifty plunging sharply amid a surge in volatility. Here's a breakdown of the key factors that contributed to the downturn:
1️⃣ Weak Global Cues: Concerns over slowing global growth and rising geopolitical tensions have dampened investor sentiment worldwide.
2️⃣ Sectoral Sell-Off: Widespread selling pressure was observed across multiple sectors, adding to the bearish momentum.
3️⃣ Weak Q3 Business Updates: Early indications of lackluster Q3 performance by several companies have raised concerns about earnings growth.
4️⃣ FPI Selling and Rising Dollar: Foreign portfolio investors (FPIs) have been net sellers, coupled with a strengthening dollar that has put pressure on emerging markets like India.
5️⃣ Virus Scare: Renewed fears of virus outbreaks have heightened risk aversion among market participants.
Stay vigilant and focus on a disciplined approach to navigate through this volatile phase.
#MarketUpdate #StockMarketCrash #Nifty #Sensex
The stock market witnessed a significant crash today, with the Sensex and Nifty plunging sharply amid a surge in volatility. Here's a breakdown of the key factors that contributed to the downturn:
1️⃣ Weak Global Cues: Concerns over slowing global growth and rising geopolitical tensions have dampened investor sentiment worldwide.
2️⃣ Sectoral Sell-Off: Widespread selling pressure was observed across multiple sectors, adding to the bearish momentum.
3️⃣ Weak Q3 Business Updates: Early indications of lackluster Q3 performance by several companies have raised concerns about earnings growth.
4️⃣ FPI Selling and Rising Dollar: Foreign portfolio investors (FPIs) have been net sellers, coupled with a strengthening dollar that has put pressure on emerging markets like India.
5️⃣ Virus Scare: Renewed fears of virus outbreaks have heightened risk aversion among market participants.
Stay vigilant and focus on a disciplined approach to navigate through this volatile phase.
#MarketUpdate #StockMarketCrash #Nifty #Sensex
1 USD=85.75
INR is depreciating because of the following reasons:
🔸India's trade deficit hit a record high of $37.84 billion in Nov24.
🔸Imports are increasing while exports are declining📉
🔸FII's are selling Indian Market heavily from last 2 months
🔸US 10-Year Bond Yield at 4.5%
Overall Economic Situation in India is not in good shape now
🔸Inflation Rising
🔸GDP Growth Rate decreasing
🔸Unemployment Increasing
🔸Taxes are very high
🔸Very Slow Consumer Demands especially in FMCG & Automobile Sectors
To strengthen the economy, it is essential to implement impactful measures that prioritise especially the manufacturing sector, given its critical role in creating good employment opportunities.
Boosting exports through targeted initiatives and introducing tax cuts for the middle class are urgent priorities.
These steps would not only enhance industrial growth and global competitiveness but also empower households, increase disposable incomes, and drive domestic consumption which are the key pillars for sustainable economic progress.
INR is depreciating because of the following reasons:
🔸India's trade deficit hit a record high of $37.84 billion in Nov24.
🔸Imports are increasing while exports are declining📉
🔸FII's are selling Indian Market heavily from last 2 months
🔸US 10-Year Bond Yield at 4.5%
Overall Economic Situation in India is not in good shape now
🔸Inflation Rising
🔸GDP Growth Rate decreasing
🔸Unemployment Increasing
🔸Taxes are very high
🔸Very Slow Consumer Demands especially in FMCG & Automobile Sectors
To strengthen the economy, it is essential to implement impactful measures that prioritise especially the manufacturing sector, given its critical role in creating good employment opportunities.
Boosting exports through targeted initiatives and introducing tax cuts for the middle class are urgent priorities.
These steps would not only enhance industrial growth and global competitiveness but also empower households, increase disposable incomes, and drive domestic consumption which are the key pillars for sustainable economic progress.
👍1
FASTEST GROWING SECTOR :- Data Centre.
Potential to generate more data in the next decade than in all of history combined.
TOP 8 DATA CENTER STOCKS :-
- E2E
- Black Box
- Anant Raj
- Aurionpro
- Marine Electric
- KRN Heat Exchangers
- Orient Technologies
- Techno Electric.
Potential to generate more data in the next decade than in all of history combined.
TOP 8 DATA CENTER STOCKS :-
- E2E
- Black Box
- Anant Raj
- Aurionpro
- Marine Electric
- KRN Heat Exchangers
- Orient Technologies
- Techno Electric.
👍2
Quick take on the markets:
1. Economy is slowing down, and this slow down is no longer a one quarter phenomena, the NSO has estimated Fy2025 GDP growth at 6.4% .
2. We expect this number to come down further for FY2025
3. RBI has stayed tight for too long . Now with Rupee depreciating, and US yields staying high, the room for RBI to cut has shrunk.
4. The government spending this fiscal has not been as strong as budgeted, and we will have unspent funds as of March 31st
5. Demand is not growing fast enough .
6. The need of the hour is a combination of counter cyclical fiscal spending and rate cuts on the monetary policy front.
7. Both have been lacking due to various reasons.
8. The good news is the Domestic flows into the markets, otherwise we would have seen much sharper cuts.
9. Primary markets are also holding up, showing that appetite for Indian companies remains high.
10. However, promoters and PE funds selling out has also reached very high levels.
11. FPIs are selling regularly, it is still a small portion of their total investments , but concentrated sales in Financials , Oil and Gas et al has had an impact on the markets.
12. What to do now:
a. Avoid lump sum investments
b. We dont know where the bottom will be reached on indices when sentiment goes low.
c. Markets may fall sharply and stay low for years as we saw in the 1990s or in 2008-2013, though we dont foresee such an eventuality for now.
d. The Market Cap to GDP ratio is still very high and if growth does not pick up , it will stay high.
e. Its back to Basics....revisit your financial goals, time horizon and risk appetite.
f. Based on these redo your Asset Allocation and rebalance your portfolio.
13. Not much leeway with the government to give meaningful relief to the middle classes in the Union Budget 2025.
14. Leading indicators are not showing strength for the economy
15. The Macro, Top Down approach will not work for this year and the next. Active fund managers will outperform passive index funds.
16. But we cant forecast accurately which funds/ stocks will outperform
17. Earnings season will see huge volatility , with any poor performance seeing big downsides in prices and any good result being rewarded very strongly as well.
18. Best to wait out this period. We dont see more than another 5% downside but we cant be sure .
19. Trump 2.0 remains another global pressure point.
More on that nearer to Inauguration on Jan 20th.
20. What sectors looking better: street is divided on these, my personal preference is India focussed pharma, midcap IT , large PSU banks , telecom leaders, industrials and power .
21. Key support levels have been taken out , hence the markets can fall sharply now. However, 4 days of Rs 2000 crore per day inflows by FPIs will lead to a huge rally. Both shorts and longs will hit stop losses in such markets.
22. Hence best is to focus on long term investing for your financial goals and not to worry too much about the macro or noise around us
1. Economy is slowing down, and this slow down is no longer a one quarter phenomena, the NSO has estimated Fy2025 GDP growth at 6.4% .
2. We expect this number to come down further for FY2025
3. RBI has stayed tight for too long . Now with Rupee depreciating, and US yields staying high, the room for RBI to cut has shrunk.
4. The government spending this fiscal has not been as strong as budgeted, and we will have unspent funds as of March 31st
5. Demand is not growing fast enough .
6. The need of the hour is a combination of counter cyclical fiscal spending and rate cuts on the monetary policy front.
7. Both have been lacking due to various reasons.
8. The good news is the Domestic flows into the markets, otherwise we would have seen much sharper cuts.
9. Primary markets are also holding up, showing that appetite for Indian companies remains high.
10. However, promoters and PE funds selling out has also reached very high levels.
11. FPIs are selling regularly, it is still a small portion of their total investments , but concentrated sales in Financials , Oil and Gas et al has had an impact on the markets.
12. What to do now:
a. Avoid lump sum investments
b. We dont know where the bottom will be reached on indices when sentiment goes low.
c. Markets may fall sharply and stay low for years as we saw in the 1990s or in 2008-2013, though we dont foresee such an eventuality for now.
d. The Market Cap to GDP ratio is still very high and if growth does not pick up , it will stay high.
e. Its back to Basics....revisit your financial goals, time horizon and risk appetite.
f. Based on these redo your Asset Allocation and rebalance your portfolio.
13. Not much leeway with the government to give meaningful relief to the middle classes in the Union Budget 2025.
14. Leading indicators are not showing strength for the economy
15. The Macro, Top Down approach will not work for this year and the next. Active fund managers will outperform passive index funds.
16. But we cant forecast accurately which funds/ stocks will outperform
17. Earnings season will see huge volatility , with any poor performance seeing big downsides in prices and any good result being rewarded very strongly as well.
18. Best to wait out this period. We dont see more than another 5% downside but we cant be sure .
19. Trump 2.0 remains another global pressure point.
More on that nearer to Inauguration on Jan 20th.
20. What sectors looking better: street is divided on these, my personal preference is India focussed pharma, midcap IT , large PSU banks , telecom leaders, industrials and power .
21. Key support levels have been taken out , hence the markets can fall sharply now. However, 4 days of Rs 2000 crore per day inflows by FPIs will lead to a huge rally. Both shorts and longs will hit stop losses in such markets.
22. Hence best is to focus on long term investing for your financial goals and not to worry too much about the macro or noise around us
👍3
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I’ve written a detailed investigation thread exposing the Aarman.com + Beldex staking scam and how it is cheating innocent people across India.
Here is the thread ⬇️
🔗 https://x.com/namithsaliyan/status/1989014642899972521
I humbly request you to retweet and share it, so more people become aware and don’t fall into this Ponzi scheme.
Your support can genuinely save families from losing their hard-earned savings. 🙏
Thank you for your time and help.
Here is the thread ⬇️
🔗 https://x.com/namithsaliyan/status/1989014642899972521
I humbly request you to retweet and share it, so more people become aware and don’t fall into this Ponzi scheme.
Your support can genuinely save families from losing their hard-earned savings. 🙏
Thank you for your time and help.
X (formerly Twitter)
B M Nɑмιтн Sɑlιyɑn (@namithsaliyan) on X
ALERT: A massive crypto scam is spreading in India — Aarman dot com + Beldex “staking plans.”
Thousands of people are being fooled by guaranteed returns & forced recruitment.
After weeks of investigation, here’s everything I found
Please read this thread…
Thousands of people are being fooled by guaranteed returns & forced recruitment.
After weeks of investigation, here’s everything I found
Please read this thread…
❤1