If you aim to achieve substantial returns in the long term through investing, growth stock must be your ideal investment strategy. Growth stocks are companies with the potential to grow at an above-average rate compared to other companies.
Identifying companies that typically reinvest their earnings into the business is crucial to fuel expansion, innovation, and increased market share. By focusing on companies with growth potential, you can increase your chances of maximising returns and mitigating risks associated with market volatility.
At NIWS, the best stock market course in Indore, Jaipur and Delhi, our experts emphasise the structured approach to investing in growth stocks. We aim to equip our students with the knowledge and tools to identify promising growth stocks and build a resilient investment portfolio.
Let’s examine the details of growth stocks, as explained by our expert traders, and determine the best methods for identifying them.
A growth stock is anticipated to grow significantly above the market's average growth rate. Growth stocks do not pay dividends because they are usually associated with companies that tend to reinvest their earnings back into the business.
An investor can earn money in growth stocks through capital gains when they eventually sell their shares.
Investing in growth stocks can be risky as investors gain money when they sell the shares. If the company does not do well, investors take a loss on the stock when it's time to sell.
Some of the characteristics of a growth stock are-
Growth stocks are usually from industries with high growth potential. For example, in India, green energy companies currently have a huge potential, which means their shares have the potential to grow as well. These industries are usually in the early stages of development, which leaves plenty of room for companies to grow and develop.
Strong and promising growth and increasing market share indicate a company's ability to outperform competitors and capture a larger portion of the market.
The primary indicator of a growth stock is growing sales. Companies that report high revenue growth rates are often seen as having successful products or services that are in high demand. Growing sales are usually the result of effective business strategies.
A large target market has many opportunities to grow and generate revenue. Companies with products or services that cater to a broad audience or address a significant market need can scale more efficiently and capture substantial market share.
Here is a detailed explanation of critical fundamental analysis techniques which can help you identify the best stocks for long-term investment-
The P/E ratio measures the company's market price against its earnings per share. A higher P/E ratio indicates that investors are paying more than the company's earnings, which means the stock is overvalued.
Analyzing companies in similar industries can help you understand where the company stands. A company with a lower P/E ratio than its competitors may be undervalued relative to its industry.
The debt-to-equity (D/E) ratio measures a company's financial leverage by comparing its total liabilities to its shareholders' equity. If a company's financial position is stable, then the Debt-to-equity ratio will be lower, as the company will use less debt to finance its operations.
Strong leadership leads to consistent company growth. So, investors should research the backgrounds, experiences, and performance of a company's executives and board members.
When selecting a stock to invest in, always consider its long-term stability. Investors can decide by examining the company's historical performances, profit, and revenue trends.
Companies that regularly pay dividends and increase them over time show a trait of being well-established and are considered reliable. This consistency can give investors regular income and signal that the company has a solid financial foundation.
Some of the advantages of investing in high-growth stocks are-
Investing in high-growth stocks requires a lot of work. Before investing in growth stocks, you should know how to identify them. Growth stocks have the potential to grow above the market's average growth rate. These stocks do not provide dividends, as the company reinvests all the earnings to increase its chances of growth.
Proper research is important to identify the best stock. This can be done through P/E Ratio Analysis or by comparing the company with its peers for better understanding. You can connect with our experts at NIWS to learn more. We have industry experts who can provide in-depth knowledge.
Investing is a rewarding journey if done properly. To make an informed investment decision, it is essential to review a company's balance sheet. The financial statement offers a sneak peek into a company's financial health, including its assets, liabilities, capital invested, etc.
However, only some balance sheets tell the truth; some may harbour red flags that you should be able to spot. By spotting these red flags in the company balance sheet, you can avoid the significant losses you may have to bear otherwise.
In this blog, our experts from NIWS, one of the best trading institutes in Delhi, Jaipur and Indore, will guide you through the key warning signs in a balance sheet when analysing the statement and making an informed decision. Check out these red flags to ensure safe and profitable investments.
Let's discuss the most common red flags in company Balance sheets-
A consistent cash flow indicates healthy financial health, but irregular cash flow can indicate operational issues. So, if you spot any fluctuations or negative cash flow, consider them a red flag.
For example, suppose a company has consistent sales but a statement showing a major drop in cash flow from operations. In that case, either the company has high inventory levels or increased credit sales that are not being collected promptly.
When companies classify expenses inappropriately to improve the balance sheet, they present wrong information. This misinterpretation of expenses can be a mistake or intentional, but it is a red flag.
For example, if a tech company shows routine software updates as a capital expense instead of an operational expense, it is misinterpreting the costs.
Debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. When you spot a consistent increase in this ratio- it means the company heavily relies on borrowing, which can lead to financial instability.
For example, a manufacturing firm's debt-to-income ratio increases from 2:1 to 3:1 over two years. This clearly indicates that the firm is taking on more debt without a corresponding increase in income.
When revenue decreases year over year, this means the company may be struggling due to market competition, management inefficiencies, or product issues. This decrease should be consistent for you to count it as a red flag. Once you know the reason behind the decrease in revenue, you will be able to make an informed decision.
When a company sets aside some amount of money when it is performing well with the intention of boosting earnings when it is performing poorly, this is called cookie jar accounting. When someone does this, they are basically misleading the investors, which can be considered a red flag.
A higher account receivable means your customers are paying on time, and the company is good at collecting. However, when rising account receivables cannot be backed by rising revenue, the company needs help to collect payments from its customers, potentially leading to cash flow problems.
When a company owes more than it owns, it is in trouble. It is a sign that the company is struggling with financial distress and potential insolvency.
When a company makes less profit from its sales, its gross profit margin decreases. Increased production costs or lower sales prices can cause this.
When you pay close attention to these red flags, investors can better evaluate the company's financial condition. These red flags help you make an informed decision while investing and avoid the pitfalls you would have been in. Having an accurate picture of a company's financial health is crucial, as it is the deciding factor for any investor.
If you wish to learn how to scrutinise a company's balance sheet and gain a clear perspective on other factors you should consider while investing, you can opt for courses at NIWS. We have multiple course modules designed by industry experts to educate students about the stock market, wealth management, etc. Connect with us now!
Curious about how the pros determine whether a stock is a bargain or a blunder? Understanding stock valuation is key to making savvy investment decisions.
Valuation helps investors determine a stock's worth beyond its current market price. This understanding guides investment choices, helping to manage risks and gauge an investment's performance. It ensures smarter decision-making, fairer business deals, and better resource handling, leading to more stable and profitable investments.
Brought to you by NIWS, the esteemed stock market institute in Delhi, Jaipur, and Indore, this blog unpacks the critical role of stock valuation in investment decisions. At NIWS, we pride ourselves on educating students and avid traders with top-tier financial insights. Read on to deepen your understanding and enhance your skills in making well-informed investment choices.
Let's discuss some of the benefits of valuation in investment decisions-
Accurate information about the valuation helps the investor make an informed decision. Through meticulous analysis, investors can identify opportunities that align with their objectives. It allows investors to avoid paying more than the asset's actual value.
Since valuation is done after careful analysis of every aspect of the asset, it helps investors to mitigate the risks. Through valuation, it is easier to identify the potential returns associated with the risks.
Valuation ensures that the risks associated with the investment are paid off. This disciplined approach ensures that potential rewards justify the risks assumed, fostering a sensible investment strategy.
Valuation is the key to maintaining a balanced and diversified portfolio. Strategic decisions can be made through valuation to ensure an extensive and balanced portfolio. Periodic asset assessment and valuation can help investors develop rebalancing strategies.
Valuation provides insights into a company's financial health and future potential. An investor can maintain a healthy financial condition by assessing gross profit, operating margin, and profitability. Careful valuation makes it easier to understand how efficiently the company generates profits from its operations and manages costs.
Accurate valuation enables investors to spot opportunities where the market has mispriced a stock. Investors can estimate a stock's value through detailed valuation techniques such as discounted cash flow (DCF) analysis and comparable company analysis. When a stock's current market price is significantly lower than its estimated value, it is considered undervalued.
While seeking undervalued opportunities, investors conduct thorough research and due diligence to mitigate risks associated with value traps or fundamental weaknesses that may justify the stock's low valuation.
Since valuation is the core of any investment, it is essential to do it properly. Accurately assessing an asset's value can help you navigate the entire market. Valuation's most common benefits include managing risks, managing portfolios, maximising returns, and making well-informed decisions.
With the help of NIWS, you can learn about different valuation methods and how to apply them. At NIWS (National Institute of Wall Street), our commitment to financial education excellence ensures that investors have access to comprehensive courses and resources. Through expert-led training in valuation techniques and practical applications, NIWS equips investors with the knowledge and skills necessary to excel in financial markets.
Connect with our stock market experts now to know more.
Are you a share market enthusiast looking to earn profits from stocks? If yes, you must know accurate stock valuation methods to make the best investment decisions, manage your portfolio, assess risks, and plan strategically!
Stock valuation determines a stock's intrinsic value to assess whether it is overvalued, undervalued, or reasonably priced. Once identified, there are many opportunities to invest and book profits in underpriced stocks, sell overpriced ones, and hold reasonably priced ones.
But the question remains: How do you evaluate a stock? In this blog, our experts from NIWS, one of the best stock market institutes in Jaipur, Delhi and Indore, will assist you with the five best stock valuation methods, which even a beginner or a pro stock market enthusiast can grasp to book the most profits!
Let’s get into the details to know it all!
Before we get into the details of stock valuation methods, let’s first explore how they are done!
Absolute
In this method, stock valuation is based on a business's fundamental analysis, which is conducted using information collected through financial statements. These methods focus on a company's underlying financial health and future cash flows, independent of its current market price.
Relative
Relative stock valuation is a method of comparing financial ratios between similar companies. These methods use valuation multiples from comparable companies to determine whether a stock is reasonably priced.
The top methods for an accurate stock valuation include the following-
DCF Analysis is a method for valuing assets using their expected future cash flows. The core of DCF analysis is that the value of money today is worth more than the same amount in the future due to its potential earning capacity.
This analysis is helpful for people or organisations that are considering acquiring a company or buying securities.
Steps in DCF Analysis
The following are the steps which are used for conducting a DCF Analysis-
Advantages and Disadvantages
Some of the strengths of DCF Analysis are-
Weakness of DCF Analysis are-
DDM is an analysis based on the theory that a company's current price is worth the sum of all its future dividend payments when discounted back to its present value. The dividend discount model (DDM) is a quantitative method for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all its future dividend payments.
Steps in DDM Calculation
Following are the steps which are used in DDM Calculation -
Advantages and Disadvantages
Some of the strengths of DDM Analysis are-
Weakness of DDM Analysis are-
This method is used mainly when valuation using other models is not possible. This model compares the stock's price multiples to a benchmark to determine whether the stock is underpriced or overpriced. Comparable company analysis is the process of comparing companies based on similar metrics to assess their enterprise value.
Steps in CCA
Following are the steps which are used in CCA -
EBITDA- Enterprise value divided by earnings before interest, taxes, depreciation, etc.
Price to Sales Ratio- Market price per share divided by sales per share.
Advantages and Disadvantages
Some of the strengths of CCA are-
Weakness of CCA Analysis are-
The P/B ratio measures the market value of a company's stock against its book. This ratio helps evaluate companies with significant tangible assets, such as financial institutions and manufacturing firms.
The formula for P/B Ratio is P/B = Market Price per Share / Book Value per Share where:
Advantages and Disadvantages
Some of the strengths of Price the book ratio are-
Weakness of the P/B Ratio are-
The Price-to-Earnings (P/E) ratio is one of the most commonly used methods for valuing a company's stock. It measures the relationship between a company's current share price and earnings per share (EPS).
The formula of P/E Ratio is P/E = Market Price per Share / Earnings per Share (EPS) where:
Advantages and Disadvantages
The advantages of the P/E Ratio are-
Some of the weaknesses of the P/E Ratio are-
There is no single evaluation method that fits all situations. But with the help of this blog, you are now well aware of the characteristics of all five valuation methods and their pros and cons. While a valuation method such as DCF helps value assets using their expected future cash flows, a CCA valuation method compares companies with similar companies to get the valuation.
These methods can be applied in real-world investing and provide a quick and intuitive way to compare valuations. At NIWS, we aim to equip our students with all the stock market-related methodologies, tips, and tricks curated by experts from their experience!
Want to discuss the details? We are just a call away! Contact our experts now to learn more.
What Should I Do After The 12th- 2023 Most Lucrative Courses!
The question haunts every 12th grader, “What should I do after 12th?” during their study. Their worry is not unfounded or should not be disregarded as silly. With so many opportunities today, it becomes daunting for students to pick an option right after schooling. In recent years, innumerable career opportunities have opened up in the stock market. It also promises instant profits to investors and traders as the stock market grows with each passing day.
“NIWS” National Institute of Wall Street offers a wide range of courses that can benefit both high school and college graduates. The courses range from the stock market and banking to finance and wealth management. The professionals behind the scenes have 10 to 15 years of experience in domestic and international markets. Their tried, tested, and successful strategies have enabled students to pursue career goals and ambitions.
Owing to the blooming number of possibilities for career advancement in the stock market, you can now ask, “What should I do after the 12th?” with courage. Whether you plan to invest or trade, the first step to understanding the stock market is analyzing which stock to buy first and when.
Earning profits is achievable once you have cracked the code and grasped the technique. There is a multitude of indicators which give away the correct time to make your move. However, picking a share market classes in Indore can equip you with an in-depth and comprehensive knowledge of patterns and trends.
This knowledge will enable you to identify stock price movements and prepare you to become a good trader with foolproof knowledge of mid-term, short-term, and long-term trading and investments.
The question “What should I do after the 12th?” can now be followed up by the answer PFMM, or Program in Financial Market Management, a 6-month stock market course. The program deals with topics based on financial market management. It caters to students interested in embarking on a journey to establish themselves in
The program covers six modules that deal with
The banking, Financial Services, and Insurance sectors have recently reached incredible heights. As per the BFSI Sector Skill Council of India (BFSISSC), individuals will have a greater chance of securing jobs in this sector. Findings reveal that the industry will create over 8 million jobs by 2026.
While cash or equity trading takes up significant space in the capital market module of the program, the derivative module incorporates future trading. The currency module elaborates on forex trading, and the commodity module explains bullion trading and training.
The course fee is ₹60,000. The student will be rewarded with six certificates, and the diploma assures 100% job placement in broking houses. After completing the 6-month program, candidates can secure jobs in
Students who opt for the course after graduation have more chances than high school graduates regarding placements in reputed organizations. 12th graders can expect jobs in small companies and sub-brokers offices.
Prophesying and foretelling have been associated with necromancy for too long — but what if you can unearth the science behind predicting market trends for a living and end your unceasing question of “What should I do after 12th”?
The NIWS Certified Diploma in Research Analyst course is a four-month program offered at ₹50,000. Within four months, you can bag the title of a Stock and Commodity Market Research Analyst by learning techniques for distinguishing turning points and trends in the stock market and decoding ways to forecast prices.
Students will also benefit from gaining knowledge to understand graphs to form buy-sell judgements. The course also provides tools that enable students to maintain trading positions and exploit technical analysis for intra-day trading. The study would allow candidates to make capital and avoid losses with intensive training to determine how the price of commodities, equities, and securities are doing and understand prior behavior models.
Students can practice live graphs and software like
Ideal candidates include those who wish to pursue a career in the financial market. The course is also available to those already working as sub-brokers, dealers, investment consultants, fund managers, and portfolio managers.
If you still haven’t found the answer to “What should I do after the 12th,” consider opting for the Research Analyst SEBI NISM Series XV Certification Module. The course duration is one month and is offered at ₹15,000. After a month, you can showcase yourself as a SEBI-certified research advisor or an analyst, enabling you to provide research tips for the benefit of the Indian Financial Market as per SEBI.
By the end of the course, you will have grasped the
The course suits those who aspire to become a commodity market or share market advisor and even those who dream of opening a research advisory firm. In addition, a student of this program would also acquire skills to analyze events, news, and data.
Recently, the course has become popular as it is mandatory for conducting research and providing advice in mass media through television, press, SMS, email, and blogs. Those who wish to grow their careers in broking houses, trading and investment professionals, and students who want to establish themselves in the Research and Portfolio Management field can benefit from the program. Those in the final year of their graduation can sign up for the course.
If you can imagine working in financial service industries, let the question “What should I do after the 12th?” be posed no longer. A Certificate in Stock & Financial Markets will allow you to conduct active trading using specialized software and crewing back-office operations of mutual funds organizations and broking houses. The five-month program is offered at ₹45,000.
It is primarily aimed at those who plan to enhance the system or function as terminal operators or dealers in mutual fund businesses and stock market industry broking. In addition to students, RMS, ARMs, and dealers of mutual funds and broking houses can sign up for the course.
12th-pass students are welcome to join, and college graduates will likely get placement assistance from highly reputed companies.
Instead of feeling burdened with finding an answer to “what should I do after 12th,” it’s better to face opportunities with a brave face. It’s time to find out if you have a knack for the stock market or if there is a skilled trader or investor inside you waiting to be unleashed.
The wide range of courses, exceptional learning settings, and experienced educators make NIWS a renowned Stock Market Institute In Jaipur. With their goal of implementing unimpeachable and ethical global market practices, NIWS dreams of establishing control in the Indian Financial market space and making a mark globally.
The polished E-Learning Platform and offline courses facilitated by NIWS have enabled countless students to leave their imprints in the banking and financial sectors.
Go for the best and take the best results home. Book your online demo now to know more.
Post Covid 19, the number of people participating in the stock and investing game has increased drastically. Around 140,000 new investors entered the stock market in 2020. According to CDSL and NSDL, Active accounts rose by 10.4 million by the end of 2020.
During the lockdown, people understood the importance of saving and investing money. As inflation is eating up all their hard-earned savings, investing is no longer fancy but has become necessary for everyone.
However, the main problem is that to invest in the stock market, you need to learn about it first.
To make your learning and investing process easier, NIWS (National Institute of Wall Street) presents a list of stock market courses that you can enrol in immediately after the 12th.
Book your Free Online Demo now to know more.
Here is a compilation of all the technical courses NIWS provides concerning the stock market. Even if you’re studying in your high school or 12th pass out, you can enrol in these lucrative options and immediately start earning profits.
98% of traders who invest in stock or commodity markets squander their money because they lack training and knowledge.
This course is designed for Newbies in the STO who want to start in the market.
This course is based on logic, news, and event analysis and emphasizes fundamental data from millions of successful stock market personalities.
Eligibility For This Course - Minimum 12th pass.
Fees for the Course - INR 40,000/-.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration- 4 Months
Certifications- Program completion certificate from NIWS.
This course is specially designed for stock market newbies who want to learn technical analysis.
Eligibility For This Course
Fess For The Course - INR 15,000/-.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration - 1 Month
Certifications- NIWS Technical Analysis Certification.
This course is designed to equip you with the strategies and techniques to become a successful trader in futures and options.
Here's What Is Kept For You
Eligibility For This Course - Minimum 12th pass
Fees For This Course - INR 15,000/-.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration - 1 Month
Certifications- NCFM Options Strategy Certification.
As a graduate, you can work as an option strategy or arbitrager expert in big finance corporations.
This course is specifically designed for newcomers to the stock market who are unfamiliar with its intricacies.
Eligibility For This Course - Minimum 10th Pass.
Fees For The Course - INR 10,000/-.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration- One month
Certifications- NIWS Certificate in Smart Investment and Trading Professional.
Develop a sensible approach to investing & trading.
This course will help you become an intelligent professional in investment and trade.
Once you complete the fundamental analysis, you must conversate with the technical analysis. Without technical analysis, even the experts don't move further.
This course is for beginners to grasp technical analysis.
Eligibility For This Course
There are no specific eligibility criteria.
Fees For The Course - INR 7500/-.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration - 5 Days
Certifications - NIWS Certified Technical Analysis Crash Course certificate.
Job as a Technical Analyst or Research Analyst at a significant financial corporation.
Technical Analysis is a non-negotiable before investing or trading in a stock. Harmonic Trading attempts to predict future movements, unlike other standard trading methods.
The Course is for newbies who want to get a grip on Harmonic Trading.
Eligibility For The Course - Minimum 10+2(HSC) passed.
Fees For The Course - INR 60000/-.
However, you can also pay in instalments.
Note: The examination fee for NSE & SEBI certification is separately chargeable.
Duration - 2 Months
Certifications - Course completion certificate from NIWS.
The stock market is a sunrise industry. There are no such academic criteria. You only need to pass any HS education (class 12). These certificate courses are designed so that you can gain knowledge and build a flourishing career in this domain. As data and surveys show, less than 3% of India's total population currently invests in the stock market, and the number will increase.
Ans: If you are interested in the money or stock market, a technical analysis crash course or professional trading course is the best option for your niche.
Ans: No matter your background, NIWS share market classes in Indore will help you with all the initial beginner to professional details for easy clarity, learning and lucrative benefits.
Ans: You can easily grab your seat for a high-paying job after the 12th with the best Stock Market Institute In Delhi by NIWS. Check out our placement history to know more.
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