Can Fin Homes Limited provides housing finance in India through home loans, affordable housing loans, credit link subsidy scheme (CLSS), Pradhan Mantri Awas Yojana (PMAY) and composite loan schemes. Furthermore, the Company takes fixed deposits as well as cumulative ones and provides a range of financial products and services including insurance products.
Liquidity is a measure of how quickly a company can convert cash or other assets into money to meet short-term business and financial obligations. It can also serve as an indicator for investors when assessing a company’s potential as an investment.
Liquidity in a stock depends on its trading volume, speed of trading and transaction costs. Furthermore, the difference between the bid price and ask price – known as the bid-ask spread – plays an important role.
When the gap is small, the market for stock is considered liquid. Conversely, when there are substantial discrepancies, the stock market may be deemed illiquid.
Another useful metric is share turnover, which measures the number of traded shares divided by outstanding shares. A high ratio suggests traders are able to purchase and sell stocks quickly.
The P/B Ratio is a ratio that measures how much stock price of a company is worth in relation to its book value. A company’s book value is determined by subtracting liabilities from assets.
The price-to-book ratio can be used to value companies in capital-intensive sectors, such as automakers, manufacturing firms, and financial institutions. Unfortunately, it’s less useful for firms with high intangible assets like software firms since most of their value lies in patents or other intellectual property that’s not recorded on the books as an asset.
However, P/B ratios don’t provide a complete picture of a company’s financial performance and growth prospects. They should be evaluated against other stocks within the same industry and combined with other valuation indicators when investing in an investment stock.
Dividend Payout Ratio
Dividend Payout Ratio is a tool investors use to predict the type of investment returns they should expect from a company. Generally, those interested in dividend-paying stocks tend to prioritize companies with high payout ratios.
Payout ratios differ across different industries, but tend to be higher in more established sectors like telecom, utilities and consumer staples due to companies having built up large cash reserves that can be used for dividend payments.
Investors should exercise caution when assessing dividend payout ratios. If a company’s dividend payout ratio is high, it could indicate that management is keeping too much money within the business rather than sharing it with shareholders. This could have an adverse effect on shareholder confidence levels.
A stock’s P/E ratio is a measurement of its share price and earnings per share. This ratio can be useful when assessing a company’s worthiness and whether to invest in it.
However, the P/E is just one factor among many that investors should use when assessing a stock. It should not be used as an all-inclusive measurement and should be combined with other metrics like price-to-book ratio and dividend payout ratio.
The P/E ratio is calculated based on analyst estimates of net income and weighted average shares outstanding, without taking into account future earnings growth.
A high P/E ratio may suggest investors anticipate an uptick in earnings. This could be indicative of market hype or simply signify that the company is overvalued.