Rajen Gala

Benchmark

What is a Benchmark? A benchmark is a standard or point of reference that helps you evaluate the performance of something. Think of it as a yardstick that you can use to compare results. For example, if you\’re running a race, your benchmark could be the fastest time recorded for that distance. It gives you

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Forward PE

The Forward PE Ratio is a bit different. Instead of looking at the past, it focuses on the future. It’s calculated using the company’s estimated earnings for the upcoming year rather than what the company earned last year. Think of it like this: If you’re planning to buy a car, you wouldn’t just look at

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Trailing PE Ratio

Trailing P/E Ratio When you hear people talk about the stock market, you might come across the term \”Trailing P/E Ratio.\” It’s actually straightforward concept once you break it down. What is the P/E Ratio? The P/E Ratio stands for Price-to-Earnings Ratio. It’s a quick way to figure out if a stock is expensive or

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The Networth Rule

At its core, the Net Worth Rule is a measure of financial health. It\’s the difference between what you own (your assets) and what you owe (your liabilities). In essence, it\’s a snapshot of your financial standing at a given point in time. Calculating your net worth is relatively straightforward. Net Worth=Assets−Liabilities Assets typically include savings,

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Rule of 70

The Rule of 70 is a handy rule of thumb used in finance to estimate the time it takes for an investment to double in value, given a fixed annual rate of return. It\’s a simple calculation: divide 70 by the annual rate of return (expressed as a percentage), and you\’ll get an approximation of

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Rule of 8 – 4 – 3

Investing, often likened to a chess game, requires strategic thinking, calculated moves, and a keen understanding of risk and reward. In the fast-paced world of finance, where decisions can make or break fortunes, having a structured approach to investment decisions is crucial. Enter the Rule of 8-4-3, a time-tested framework that offers investors a systematic

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