What are the Stats shown on the Fundamental tab? How are they useful in decision making?
- MCAP or Market Capitalization is defined as the total market value of all outstanding shares. Market cap. helps investors to increase the size of a company on the basis of how much of value the public perceives it to be. The greater the value, the "bigger" the company. The size and value of a company can affect the level of risk you can expect when investing in its stock. Higher Market Cap generally means low risk.
- PE TTM - Price to Earnings(Trailing Twelve Months) ratio is the ratio for valuing a company that measures its current share price relative to its EPS. A high P/E ratio could mean that a company’s stock is overvalued, or else that investors are expecting high growth rates in the future. Companies that have no earnings or that are losing money do not have a P/E ratio. A company’s P/E ratio can be benchmarked against other stocks in the same industry or against the broader market such as NIFTY50.
- PEG - Price/Earnings-to-growth ratio is a stock’s P/E ratio divided by the expected growth rate of its earnings for a specific period. The PEG ratio is used to determine a stock’s value while also factoring in the company’s expected growth. A lower PEG may indicate that a stock is undervalued and hence good to buy. While a low P/E ratio may make a stock look like a good buy, factoring in the company's growth rate to get the stock's PEG ratio may tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its future earnings expectations. Adding a company's expected growth into the ratio helps to adjust the result for companies that may have a high growth rate and a high P/E ratio.
- PB - Price to Book value ratio. It's calculated by dividing the company's stock price per share by its book value per share (BVPS). P/B ratios under 1 are typically considered solid investments. A lower P/B ratio could mean the stock is undervalued. However, it could also mean something is fundamentally wrong with the company.