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hiransilva23 wrote:If u dnt mind let ne knw hw csf better than hexp??u recommend and i think buying also.other thing we should follow a stock before coming its peak level.i knw dt csf also wil hav a good future.hexp also good.plz explain
Lets talk about the dimensions of valuations. Please get a pen and piece of paper because you have to work out sum.
A share can be valued either based on its earnings (cash flow) or assets (net assets). The main dimension using earnings is PE ratio ( net present value of future cash flows in case you use cash flows) and the main dimension using assets in PBV ratio.
To value a share using PE ratio I would use the following yardsticks.
a) QoQ revenue growth and YoY revenue growth
b) Gross profit margin and net profit margin
c) QoQ and YoY revenue growth
d) ROE (profit attributable to shareholders/average equity)
e) PE ratio and the comparable industry PE ratio
Now you can workout the above and let me know what you think. Below is the two threads I did containing most of the data you need to compare your above two stocks. But avoid speculative stories here. Just objective comparison. This should be a good learning for you.
http://forum.srilankaequity.com/t50607-benchmarking-richard-pieris-exports-with-hayleys-fibre?highlight=benchmarking
http://forum.srilankaequity.com/t52061-nation-lanka-finance-plc-growing-with-stability?highlight=nation+lanka
