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Kundan Motwani

5th Apr 2025 Β· SEBI-Registered Analyst

πŸ“Š 3 Financial Ratios Every Investor Must Know πŸ”

Before you invest in any stock, don’t skip these 3 key ratios. They reveal more than the hype ever will: 1️⃣ P/E Ratio (Price to Earnings) πŸ‘‰ Tells you if the stock is overvalued or undervalued based on its earnings. Compare with peers & industry average. 2️⃣ ROE (Return on Equity) πŸ‘‰ Measures how well the company uses investor money to generate profit. Higher ROE = more efficient business πŸ’Ό 3️⃣ Debt-to-Equity Ratio πŸ‘‰ Shows how much debt the company is using to finance growth. Lower ratio = stronger balance sheet βš–οΈ 🎯 These 3 give you a quick but powerful lens on valuation, profitability, and financial health. πŸ’¬ Which ratio do you swear by before investing?

#PsychologyofMoney#PersonalFinance#Miscellaneous
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