FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» FINANCE AND LEASING SECTOR
by SL-INVESTOR Today at 12:48 am

» HSENID BUSINESS SOLUTIONS PLC (HBS.N0000)
by ErangaDS Wed Jun 19, 2024 9:21 pm

» How will proposed Tax Reforms affect Sri Lankans in 2025
by Quibit Wed Jun 19, 2024 9:27 am

» Alibaba & 23 Thieves
by ChooBoy Wed Jun 19, 2024 12:23 am

» Falsified accounts and financial misrepresentation at Arpico Insurance PLC (AINS)
by ChooBoy Tue Jun 18, 2024 11:31 pm

» Impact of IMF reforms to Sri Lanka Economy
by D.G.Dayaratne Mon Jun 17, 2024 6:36 pm

» Richard Pieris Finance Ltd continue to endanger the Depositors with negative performance
by ddindika Mon Jun 17, 2024 3:17 pm

» Richard Pieris Group: Mismanaged?
by Biggy Sun Jun 16, 2024 10:02 am

» Richard Pieris Exports reports 97% decline in Net Profits
by Biggy Sat Jun 15, 2024 11:26 am

» Do your own Stock Market Research using AI Tools
by Quibit Fri Jun 14, 2024 10:50 am

» What will happen tomorrow?
by cheetah Thu Jun 13, 2024 12:07 pm

» Focus on Government controlled entities
by ErangaDS Mon Jun 10, 2024 4:15 pm

» Colombo Stock Market: Over Valued against USD!
by God Father Mon Jun 03, 2024 3:17 pm

» Financial Woes at Richard Pieris Group
by DeepFreakingValue Sat Jun 01, 2024 11:29 pm

» Report a Tax Evasion and Get Rewarded upto 15%
by God Father Fri May 31, 2024 11:51 am

» LankaGPT Platform Launched in Sri Lanka
by God Father Wed May 29, 2024 11:46 pm

» Sri Lanka’s Popularity Is Surging With Travelers. Here’s Where To Go
by ResearchMan Wed May 29, 2024 1:10 pm

» CDB Non voting
by buddikasmart Wed May 29, 2024 8:03 am

» Will share market be taxed after new Gazette
by D.G.Dayaratne Mon May 27, 2024 2:14 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by Ekanayake90 Mon May 27, 2024 7:29 am

» Seylan Bank did not pay final coupon of expired debentures
by Gaudente Wed May 22, 2024 2:32 pm

» Sri Lanka: Stock Market Fraudsters with Criminal Prosecutions
by agentnrox Wed May 22, 2024 1:50 pm

» Richard Pieris Exports PLC (REXP.N0000) future looks bleak!
by God Father Mon May 20, 2024 10:08 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube


You are not connected. Please login or register

What is Astro Analysis and how to use it to determine the future movement of stock prices

Go down  Message [Page 1 of 1]

God Father

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

What is Astro Analysis Scree294

ASTRO ANALYSIS

Concept: Concept to evaluate future movement of stock prices of companies on the basis of the change of Price Book Value (PBVx) and Price to Earnings (PERx) ratios over a period of time.
Methodology Price Earnings (PERx) and Price to Book Value (PBVx), ratios of sample companies are calculated and plotted on a graph, X Axis representing PBVx and Y Axis representing PERx respectively. Market capitalization is depicted as the size of the circle.[/size]
Sample Data: Actual market and financial information of 4 listed companies of the Colombo Stock Exchange has been used as sample data for the purpose of this study. 

Findings: 
  • Study found that Stocks move horizontally from East to West or vice versa  (From Lower PBVx to High PBVx) when book values are halved or doubled without changing other variables.
  • Study also found that Stocks move vertically from South to North (From Lower PERx to High PERx) when Earnings are halved or doubled without changing other variables.
  • Study also found that Stock tend have a span effect on its movement when share prices are doubled or halved without changing other variables. This facilitate investors to determine the movement of share prices in between quarter's when all variable such as EPS and Book Vales remain static.
  • Centre Point where 1x PBV crosses the 4 x PER is considered as the the equilibrium in which stocks are considered as fairly valued. Similarly any stock that remain in close proximity to the centre can be considered as attractive in terms of valuations.
  • It is also found that equilibrium PERx determines the period in which investors would recover their investment in full. However the applicable PERx is depended on the opportunity cost of Investments. eg. prevailing FD Rates.


Conclusion:
Valuation of companies and price of issued shares can be determined by closely monitoring the movement of PBVx and PERx over a period of time. Based on the analysis of the past movement the future share prices can be predicted. According to findings the North to South, vertical movement indicate more under value position whilst West to East, horizontal movement indicate more under over valued position. Also Companies that move close to the equilibrium or the centre indicate fair valuations and its future potential to span North East before having its natural downward trajectory.
This methodology of stock valuation and analysis to be termed as the Astro analysis and Stock Planet Research LLC to implement this methodology to predict and determine future stock prices of companies on best effort basis. Stock Planets Research is the sole owners of the intellectual rights relating to Astro Analysis, its methodology and process.

Read more: https://www.stockplanets.com/white-paper

Share this post on: reddit

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum