Today we cover (or atleast try to) one of the more important aspects of investing, arguably the most important, which is valuations. You may have heard of stocks being labelled as overvalued or undervalued, so let’s clear the air on that.
Weighted Average Cost of Capital (WACC) is an important term to understand the actual cost of capital of the company. If a company wants to raise money it can raise it through various sources all of which have a cost associated to them. Read the blog to find more about cost of capital
Although it may give us a lot of pleasure to watch that color green, neither it is possible nor advantageous for these arrows to always remain green. They must turn red from time to time to restore the balance. Let’s take a look at market corrections today.
The recovery in all major indices has been one of the sharpest ever seen. Surely at a time when the nation’s GDP shrank a record shattering 23.9% during Q2 there should have been some impact. Seems very counterintuitive doesn’t it? So what is fueling the markets in times like these? This is what we are looking at today.
The Nifty50 saw 7500 levels in the fall of March’20 and highs of almost reaching 14000 as we are writing this blog. In the rather new scenario, of fall and rise, new investors entered the markets and old investors fled(well not all of them but quite a few). Similarly, some companies struggled to adapt while others say record highs in their prices.
Wealth Creation means having the control and ownership over anything which has a monetary value or has the ability to generate money. But wealth is not created overnight, its a long process, so here’s an explainer on the process which wealth creation entails…