Posted by Fat Cat Tim Buddy > 2012-04-11 11:23 | Report Abuse

ya, thats why debt to equity ratio is a very important factor too.

Posted by aunloke > 2012-04-11 13:24 | Report Abuse

To sum up, a reasonably good stock should be the one having gearing of 0.5 or less, ROE of 15% or more, better still if P/BV is 0.8 or less. This will put the PE to 5.3, it's not easy to find but there some if you scan the market slowly.

Posted by aunloke > 2012-04-11 13:35 | Report Abuse

Another important consideration is that they must be willing to pay us:- the minority share holders.

Posted by Kim Yap Lau > 2012-04-11 14:49 | Report Abuse

Any site has the summary counter with the ROE n Gearing info?

Posted by aunloke > 2012-04-11 16:31 | Report Abuse

Yes, Bro KIan WEi 80%/15%=5.333 and that is PE. You can consider PE as P/NAT divided by EPS/NAT =P/EPS=PE=PBV/ROE. Am I right?

Posted by aunloke > 2012-04-11 16:54 | Report Abuse

Bro Kim Yap Lau, you can try ft.com and search the company you want under < quote > you'll get all the info there. Try first ,If you want the detail I'll give you later.

Posted by anipchin > 2012-04-11 18:46 | Report Abuse

From my understanding it just a vogue term people referring to. For example,
ROE = Earnings / Shareholders Equity
shareholders equity, some people call it Equity or BV or NTA.
Earnings, some people call it net income or net profit or just profit.
Just 2 cent.

Posted by Fat Cat Tim Buddy > 2012-04-11 19:14 | Report Abuse

equity = total assets minus total liabilities

net total assets do not include intangible assets such as patents and right, that why NTA will always lesser than total assets.

Return On Equity = Net income divide Equity.

hope this help..

Posted by looii3 > 2012-04-11 20:00 | Report Abuse

Hi all brothers...may I know where to get the NTA information?

Posted by aunloke > 2012-04-11 20:48 | Report Abuse

I may be wrong, But let's consider this:-
ROE=net income/equity
net income=EPS x no.of outstanding share
equity=NTA x no. of outstanding share
so ROE=EPS/NTA unless equity is not NTA x no. of outstanding share. Now I'm not so sure, hope you can help.

To bro looii3 go to ft.com ( financial time .com ),lots of info there.

Posted by aunloke > 2012-04-11 21:14 | Report Abuse

Thanks for the info, enjoy posting with you!

Posted by Fat Cat Tim Buddy > 2012-04-11 21:19 | Report Abuse

http://beginnersinvest.about.com/cs/investinglessons/a/aaless1intro.htm

a good website for learning to read annual report etc etc, tones of useful information in there..

Posted by jacklew > 2012-04-11 21:53 | Report Abuse

yes, got a bit of US share. why?