fundamental stock analysis

1 . P/E ratio=price earning ratio=current market price / earning per share
suppose current market price os a share is 100,earning per share in last
quater is 10. P/E = 100/10=10
P/E ratio is >25 indicates that market price of a share is so high.
P/E< 5 indiactes that company have some -ve issue .
good P/E ratio is 7-15.
*If TTM EPS is batter than full year EPS that is good.
2 . M/B ratio = closing price of a share / book value of this share.
The real asset value of a share is known as book value.
If m/b ratio of a share is >10 ya >3 that's bad
good M/B ratio is 4-7
3 . B /F ratio = book value of a share/current face value.
If B / F <5 is bad.
More B/F ratio is good
4 . Operating profit
OPM% = (Operating profit/sales)*100
More opm% is good.But if OPM% is less then 10 that's so bad.
5 . RONW% ( Return on net worth)
RONW% is<10 is so bad for a stock
Good RONW% is >10.
6. Beta value = the momentum of a share / momentum of total market
Beta value is less than .7 ya greater than 1.7 is so bad.

7 . Advance ,, the closing price of a share on tomorrow is greater than tomorrow -1 day
that is advance

8 . Closing price of a share of tomorrow is less than tomorrow -1 day that is decline.

if advance decline ratio is greater than 1.5 for 5 days than market price will go up.
but advanc decline ratio is less than .7 for 5 days then market price will go down.