Know the Over and Underpriced Shares of Commercial Banks

Jun 21, 2019 11:54 AM Merolagani

Investors are always enthusiastic to know the actual value of the share they possessed or they are willing to purchase. Moreover, they also want to know whether to hold or sell their stock.

In order to make that valuable decision, investors should know some basic weighing method.

According to the latest data, the share price of some of the banks is equal to their net worth. Although due to the ongoing bearish trend, the group that dominates the stock market has also experienced few hiccups.

Out of 27 listed commercial banks, Nabil Bank has the highest and Civil Bank has the lowest share price however the scenario is different if one consider P/E ratio.

In terms of P/E ratio, Nepal Bank has the lowest while Standard Chartered Bank has the highest P/E ratio.

It should be noted that higher P/E means that the share is overpriced while lower P/E ratio means the share is underpriced. Normally, share price with P/E ratio of 15 times is considered ideal for investing, however, it is not the only parameter to evaluate the shares.

One should also consider growth and expansion, dividend history, EPS, dividend payout ratio, reserve fund, capital reserve ratio and corporate governance while investing their hard earned money in to share of any company.

comments powered by Disqus

Government Fails to Collect Targeted Revenue; Capital Expenditure Nears 70%

Jul 16, 2019 03:53 PM

The government has failed to collect targeted revenue in the current FY. As per the Office of Auditor General (OAG), the government collected 83.66 percent revenue till July 15, a day before the closing of the current FY.