Professional Documents
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COMPANY PROFILE.
FINANCIAL
ADVISORY FIRM
PERSONNEL WORKING
AND OPERATIONS
MARKETING
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STAGE
CALLS USING TECHNICAL AND FUNDAMENTAL ANALYSIS EXPOSURE THROGH SALES OF FINANCIAL CONCEPT:
APPLICATION
PE RATIO.
COMPARISION
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A COMPARATIVE STUDY OF PRICE EARNINGS MULTIPLE OF TOP IT SECTOR COMPANIES OF INDIA USING STABLE DIVIDEND DISCOUNT MODEL.
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objective
To observe and compare the PE ratios of 5 IT sector companies and trying to judge the trend that they follow in the past 5 years. Studying the fundamentals affecting the PE ratio of the companies. Advising an investor as to which stock to invest in.
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WHAT IS pe RATIO?
PRICE
EARNING RATIO:
Market Price Per Share/ Earnings Per Share. According to stable growth dividend discount model: PE=(Payout Ratio)(1+gn) / Ke gn.
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Mahindra
Technologies
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methodology
Data Data Tools
Infosys.
Year. Existing PE Ratio Closing price EPS. Growth Rate Ke ROE(%) ROE Payout ratio. Estimated PE ratio. 11-Mar 31.62 3241.30 102.51 0.10 0.13 27.69 0.28 0.64 25.10 10-Mar 26.98 2615.95 96.96 0.10 0.11 29.13 0.29 0.66 120.40 1323.90 97.70 0.10 0.12 37.18 0.37 0.73 36.89 9-Mar 13.55
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8-Mar 19.73 1439.90 72.98 0.10 0.13 36.26 0.36 0.72 24.00 7-Mar 31.28 2012.60 64.34 0.10 0.15 41.90 0.42 0.76 16.99
Industry's average.
26.492
23.664
10.956
22.302
79.776
Status.
8-Mar 12/13/12
19.73 24
22.302
12
10
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in Exports
Appreciation/ Stock
Changes Mergers
12
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10
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ANALYSIS OF VARIANCE.
1= Mean PE Ratio of Infosys. 2= Mean PE Ratio of TCS. 3= Mean PE Ratio of HCL Technologies. 4= Mean PE Ratio of Tech Mahindra. 5= Mean PE Ratio of Wipro. Hypothesis Formulation: Null Hypothesis: 1= 2= 3= 4= 5 (The mean PE Ratio of all the five companies are equal.) Alternate Hypothesis: Not all PE Ratio means are equal.
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ANALYSIS OF VARIANCE.
ANOVA Source of Variation SS df MS F P-value F crit
Between Groups
7741.8266
1935.45665
0.662646118
0.625182397
2.866081402
Within Groups
58415.996
20
2920.7998
Total
66157.8226
24
Analysis of
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limitations
Only Time
Applied
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Findings
Efficiency Business
mix
Prospects
Fundamentals
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THANK YOU