In the last post (Link), we had discussed on how equity returns are driven by earnings growth and valuations. We had further detailed on how to evaluate earnings growth. In this post we will move to the second part of the equation - Valuations. Let's start with a basic question - How do you put … Continue reading A layman’s guide to equity valuations
When investing in equities, the most common question is "what returns will I get?". As seen in the earlier post (Link), equity returns are extremely volatile in the short run (sample this- the 1Y returns for Sensex has ranged from 256% to -56%) and tend to become less volatile with increasing time frame. In order to have … Continue reading Equities – dismantling the returns !!