Thread by @finologyticker

Few hacks to find the best Banking Stock 💸

• Price-to-book value
• Equity-to-asset ratio
• Non-Performing assets
• Risky loan proportion to total loan book size

Let’s understand them in detail ⤵

1️⃣Price-to-book value

This ratio compares a company’s market value to its book value.

✅Lesser the better

2️⃣ Equity-to-asset ratio

This ratio determines what % of the company's assets are owned by investors and are not leveraged.

✅ > 6 is considered good
#stockmarkets #finance

3️⃣Non-Performing assets

The loans that are subjected to repayment or there are chances that it will not be repaid by the borrower.

✅ < 2% is considered good
#StocksToBuy #nifty50

4️⃣Risky loan proportion to total loan book size

It depicts the % of risky loans to the total loan book.

✅ < 5% is considered good

There are 5+ factors to consider while selecting a banking stock. Find out some of them on
blog.finology.in/investing/bank…