Demerits of Excessive Cash Flows in Businesses

  Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental viewpoint, a company’s ability to create shareholders value is determined by its ability to generate positive cash flows, or more precisely, maximize free cash flow. Cash

PRICE EARNING (P/E) RATIO: HOW USEFUL IT IS?

PART: A KNOWING ABOUT P/E RATIO INTRODUCTION TO PRICE EARNINGS RATIO (P/E): Almost all the investors know Price Earning Ratio (P/E). It is the most readily available and understandable stock market tool. By historical P/E an investor can gain a primary knowledge about the stock. Price Earnings Ratio (P/E)