Share Market Insider

Capital Asset Pricing Model (CAPM) Theory, Importance and limitations

Capital Asset Pricing Model (CAPM)

CAPM, or the Capital Asset Pricing Model, is widely used in finance to measure the relationship between risk and expected return. Have you ever wondered why some investments carry higher risks yet deliver eye-popping returns? Or why a ‘safe’ stock might underperform even when the market is booming? Whether you’re a finance student, an investor … Read more

Understanding the Price-to-Book (P/B) Ratio: A Guide for Investors

Price-to-Book (P/B) Ratio Definition

Have you ever wondered how to determine if a stock is worth its price? The price-to-book (P/B) ratio is one of the most effective tools for helping investors gauge whether a stock might be overvalued or undervalued. Valuing a company can sometimes feel like solving a complex puzzle, but with the P/B ratio, the process becomes … Read more

Earnings Per Share (EPS): A Clear Guide to Understanding This Financial Metric

Earnings Per Share (EPS)

Earnings Per Share (EPS) is often the secret behind understanding whether a company is truly making money and why some stocks are seen as better investments than others. Have you ever wondered how investors figure this out? Let’s unpack what EPS is, why it matters, and how to use it to make smarter financial decisions. … Read more

PE Ratio (Price to Earnings Ratio): Meaning, Formula, types and its Importance.

PE Ratio (Price to Earnings Ratio)

The PE Ratio (Price-to-Earnings Ratio) is one of the most widely used tools in investing—yet it’s also one of the most misunderstood. This simple yet powerful metric helps investors separate the wheat from the chaff, providing insights into a stock’s valuation. It can sharpen your investment decisions and guide you toward smarter choices when used … Read more