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Total Share Capital 485 634.88
Equity Share Capital 485 634.88
Share Application Money 0 0
Preference Share Capital 0 0
Reserves 3,925.04 65,314.32
Revaluation Reserves 0 0
Net Worth 4,410.04 65,949.20
Deposits 77,688.21 804,116.23
Borrowings 5,852.44 103,011.60
Total Debt 83,540.65 907,127.83
Other Liabilities & Provisions 2,391.70 80,336.70
Total Liabilities 90,342.39 1,053,413.73

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Cash & Balances with RBI 6,698.70 61,290.87
Balance with Banks, Money at Call 4,468.96 34,892.98
Advances 56,113.51 631,914.15
Investments 20,881.00 285,790.07
Gross Block 417.94 11,831.63
Accumulated Depreciation 80.32 7,713.90
Net Block 337.62 4,117.73
Capital Work In Progress 18.05 295.18
Other Assets 1,824.58 35,112.76
Total Assets 90,342.42 1,053,413.74

Contingent Liabilities 36,988.46 429,917.37

Bills for collection 6,652.16 166,449.04
Book Value (Rs) 90.93 1,038.76

Source : Asian CEc

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As an investor it is vital that you find a stock at a good entry point. The best way to help you find a good
entry point is to do some fundamental analysis and try to figure out what an appropriate valuation for
the stock is. In order to incorporate valuation into a stock strategy you must first understand how to go
about valuing a stock. There are numerous valuation ratios, but some of them are more important than
others.

The 5 most important valuation ratios are;

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c & This is the most basic of the valuation ratios, but it is still a very viable
valuation method that every investor needs to understand. The price/earnings ratio is a good
valuation method to use when comparing valuation versus peers and valuations from a
historical standpoint.

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 ʹ This ratio is closely related to the P/E ratio, but it is
slightly more dynamicand incorporates the estimated growth of a company.This is a great
valuation method to use when considering whether a stock that is growing quickly is still a good
value or not, but the method is also subject to objective guesses as to the growth rate.

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 ʹ This method measures the ability of a company to provide cash flow on a
per share basis. A top reason to use this method is it typically excludes possible accounting
distortions that other investment ratios might not be able to exclude.






 
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 ʹ The book value of a company is a nice conservative valuation method
that value investors and more traditional investors love to use.





 
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=#c )!c * ʹ While not every stock has a dividend, understanding that a dividend yield is
essential in valuing a company is important. A Dividend yielding stocks are typically more
mature and more value related, as opposed to growth stocks which often yield nothing or
almost nothing.
 






 

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High þ
c means the stock is overpriced and
vice versa so SBI share are overpriced while the
shares of Andhra bank are underpriced. Hence we
suggest that shares of Andhra bank should be
þ$ c

c 5.014 14.4 bought and shares of SBI should be sold.
From the PEG ratio table we suggest that shares of
Andhra bank should be bought as PEG ratio is less
than 0.5 and shares of SBI should be sold as PEG
þ
c

c 0.083 30 ration is more than 2.
þ
$
c 'c

cc 113.81 -28.43
If Price book value ratio comes below 1 then it is
considered as value investing. But this doesn¶t
mean that the ratio coming to 1.2 or 1.5 is not
value investing. It also depends on its future growth
þ
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High Dividend YieldShows that stock
isunderpriced (less than its real value) and it
shows the company has been hit hard in
times of economic depression and financial
hardship. Low Dividend Yieldshows that
stock is overpriced(more than its real
value)and it shows the company is
)!c*c 0.046 0.014 relativelyfinancially stable.
(*Note: For the above calculation we consider the share prices as on 31st march 2010.)