💎 Valuation Basics Explained in Tamil
Stock Market Master Course – Lesson 10
📌 Valuation na enna?
Good company vaanga vendiyadhu dhaan correct. But correct price la vaangaradhu innum mukkiyam 🔥
“Price is what you pay. Value is what you get.”
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1️⃣ PE Ratio (Price to Earnings)
PE = Market Price / EPS
Example:
Share Price = ₹500
EPS = ₹25
PE = 500 / 25 = 20
👉 PE high na growth expectations high. 👉 PE low na undervalued irukkalam (but business weak irukkalam).
---2️⃣ PB Ratio (Price to Book)
PB = Market Price / Book Value per Share
Asset-heavy companies ku PB mukkiyam.
PB < 1 na undervaluation signal irukkalam.
But business quality check panna vendum.
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3️⃣ Intrinsic Value
Company future earnings basis la calculate panna real value dhaan intrinsic value.
Intrinsic Value > Market Price → Undervalued
Intrinsic Value < Market Price → Overvalued
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4️⃣ Margin of Safety
Margin of Safety = (Intrinsic Value – Market Price) / Intrinsic Value
Example: Intrinsic Value = ₹1000 Market Price = ₹700 MOS = 30% safety 🔥
Big investors eppovume discount la dhaan buy pannuvanga.
---📊 Quick Comparison
| Metric | Use | Best For |
|---|---|---|
| PE | Profit valuation | Growth stocks |
| PB | Asset valuation | Banks, Asset companies |
| Intrinsic Value | True worth | Long-term investors |
| Margin of Safety | Risk reduction | Value investors |
⚠️ Common Mistakes
- Low PE na automatically buy panna koodadhu
- Industry average compare panna vendum
- Growth + Debt + Cash flow analyse panna vendum
🎯 Final Smart Investor Rule
✔ Strong fundamentals ✔ Consistent ROE & ROCE ✔ Healthy Cash Flow ✔ Reasonable Valuation Ithu combination dhan wealth creation formula 💰
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Disclaimer:
This content is only for educational purposes. Stock market investments are subject to market risks. Universal Money Mart does not provide stock recommendations.
This content is only for educational purposes. Stock market investments are subject to market risks. Universal Money Mart does not provide stock recommendations.
