Figyan

CA Bigyan Kumar Mishra

is a fellow member of the Institute of Chartered Accountants of India.He writes about personal finance, income tax, goods and services tax (GST), stock market, company law and other topics on finance. Follow him on linkedin or facebook or instagram or twitter.

What is margin of safety in investing – Explained with examples

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Margin of safety in investing is first introduced by Benjamin Graham and then followed by many value investors including Warren Buffet. As per margin of safety principle, value investor should purchase stocks when their market price is lower than their estimated intrinsic value. The difference between estimated intrinsic value of a stock and its current market price is known as … [Read more...] about What is margin of safety in investing – Explained with examples

What is value investing in the stock market and how it works

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Every stock has two prices: the intrinsic value and the market value. Value investing is an investment strategy in which investors buy stocks that is trading at a price lower than the estimated intrinsic value.Intrinsic value is known as the company's true worth. Whereas, market value is the price which other people are willing to pay for the asset at any given moment. You … [Read more...] about What is value investing in the stock market and how it works

Difference between Small cap, Midcap and Large cap stocks

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One of the most popular ways to categories stocks is based on its market capitalization as it defines the size of the company. Even mutual fund schemes are divided based on in which type of company they invest. Before knowing the difference between small cap, midcap and large cap, you must understand how market capitalization of a stock is calculated.Market capitalization … [Read more...] about Difference between Small cap, Midcap and Large cap stocks

What is Stock Buyback or Share Repurchase – is it good for investors?

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Stock buyback is a transaction whereby a company repurchase its own share from market at a fixed price. This facility allow a company to go back to the shareholders and make an offer to purchase shares from them.Generally we have two popular ways through which a company can return cash to its shareholders-Both methods are governed by a process laid down by … [Read more...] about What is Stock Buyback or Share Repurchase – is it good for investors?

How to calculate debt service coverage ratio – DSCR

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Debt service coverage ratio is calculated to measure availability of profits with the company to pay back its current debt obligations. In short its referred to as DSCR. The ratio reflects the company's ability to service debt obligations for a given period of time.DSCR or debt service coverage ratio can also be used to analyze availability of cash inflow to repay current … [Read more...] about How to calculate debt service coverage ratio – DSCR