2Module 2

Judging a Company

Once you can read the statements, the next question is whether the numbers are any good. This module covers the ratios investors actually use, why a ratio on its own answers almost nothing, and how EquityTale's own Health Score is built.

4 chapters · about 17 minutes

  1. 2.1Why One Number Is Never Enough5 min

    A company earned ₹80,775 crore last year — one of the largest profits in India. Is that good?

  2. 2.2The P/E Ratio4 min

    A company trades at 20 times earnings and its neighbour at 6. Is the first one expensive?

  3. 2.3Return on Equity, and What It Hides4 min

    One company is cheaper on P/E and more expensive on price-to-book than another. How can both be true?

  4. 2.4The EquityTale Health Score4 min

    A company scores 57 out of 100. What does that actually mean, and what is it deliberately not telling you?