Inve Blog · Topic
Valuation
20 articles on valuation.
DCF Valuation in India: Skip the Spreadsheet Theatre
DCF valuation in India for retail investors: why terminal value and the discount rate drive the answer, and how a reverse DCF makes it a checkable question.
EV/EBITDA vs P/E Ratio: Which One to Trust
EV/EBITDA vs P/E ratio for Indian investors — P/E hides debt, EV/EBITDA exposes it. See when each multiple wins and the one place EBITDA misleads you.
How to Value a Cyclical Stock in India (P/E Trap)
A low P/E on a cyclical stock is often a trap. How to normalise to mid-cycle earnings, when price-to-book beats P/E, and what NALCO's own concalls reveal.
P/E Ratio Explained for Indian Investors
P/E ratio explained for Indian investors — not a price tag but an embedded forecast. See why a low P/E lied about HEG, and how to test the bet inside it.
PEG Ratio Explained: P/E With Growth Built In
PEG ratio explained for Indian investors — the formula, what a good PEG ratio is, and why the growth "G" borrowed from management guidance quietly misleads.
P/B Ratio: When Price-to-Book Matters & When It Lies
When the P/B ratio works and when it lies — how to use price-to-book for banks, cyclicals and asset-heavy Indian firms, and why a low P/B is often a warning.
Value Trap: Why Cheap Stocks Stay Cheap
Value trap stocks look cheap on every ratio yet stay cheap for years. Learn why a low price is often correct pricing, not mispricing — with a real Indian case.
Earnings Yield vs Bond Yield: Cheap or Dear?
Earnings yield (1/PE) versus the 10-year G-Sec is a 30-second check on whether a stock is cheap or dear next to a fixed deposit. Sun Pharma, worked through.
EV/EBITDA Explained: Buy the Whole Business
Why professionals price a company on EV/EBITDA, not just the P/E ratio — and the capex blind spot the multiple hides. A plain walk-through using Adani Ports.
How to Value a Bank: Book Value, P/B, ROE, NIM
Value a bank on book value, P/B, ROE, NIM and asset quality — not P/E and EBITDA. A plain-English walkthrough using ICICI Bank's real numbers from India.
Intrinsic Value & DCF for Beginners (India)
Intrinsic value in plain words: a business is worth the cash it will produce, discounted for time and risk. The mango-tree way to value a real Indian stock.
Margin of Safety: Don't Overpay, Even for a Gem
A great business at a terrible price can pay you nothing for years. Graham's margin of safety, the P/E in one line, and a real HUL example for Indian investors.
Price vs Value: Mr. Market and the Gap That Pays
Stock price and business value aren't the same. In March 2020 the Nifty fell 38% while companies kept earning. Learn to read that gap and stop panic-selling.
PEG Ratio: Pricing a Stock Against Its Growth
Why a P/E of 85 can be cheaper than a P/E of 9. The PEG ratio prices a stock against how fast it grows — worked through step by step on a real Indian grower.
Price-to-Sales Ratio: Valuing a Loss-Making Company
The price-to-sales ratio values fast-growing firms that barely earn yet — and hides the danger of sales without profit. How to use it, with an Indian example.
Reverse DCF: Read What the Price Already Expects
A reverse DCF reads the growth already baked into a stock's price, so you stop guessing value. See the implied growth on Titan and ask: is it believable?
The Peak-Earnings Trap: Cyclical Stocks at Low P/E
A cyclical at record profits and a low P/E looks cheapest exactly when it's most dangerous. How to read steel and metals through the cycle, not at the peak.
Story Stock Trap: Narrative vs Numbers (Paytm)
A story stock trap is when a thrilling narrative — huge TAM, the next big thing — runs years ahead of profits. Learn to read the numbers, using Paytm.
P/E Ratio: How Many Years of Profit You Pay
The P/E ratio is the years of profit you pay upfront for a business. Learn what it measures, how to calculate it on a real Indian stock, and the cyclical trap.
Different P/E, Same Sector: Why Peers Diverge
Why do two same-sector stocks have different P/E ratios? Using TCS vs Wipro, see the four things the market really pays up for: moat, returns, safety, trust.