This says that the investors are paying Rs.10 for every rupee of projected future earnings. While it gives a glimpse into potential growth, these estimates can sometimes be inaccurate. The critical data is EPSG (EPS growth rate for the next 12 months). Industry analysts or even the company itself sometimes publish their future growth projections. […]
Capital Budgeting: Features, Methods, Importance & Examples
The manager has the task of choosing a project that gives a high return on investment more than the cost allotted to the particular project. The payback period is the time it takes for an investment to recover its initial cost through generated cash flows. It measures the speed of return on investment but does […]