Thought i share with you interesting articles from Telegraph and Citywire websites.
Useful tools:
Price-earnings ratios – good to compare shares within a sector. Trinity Mirror with a forward P/E of 12.5 looks cheap, while Headlam with a similar multiple looks a little pricey.
Dividend yields – is a company digging into reserves to pay the dividend or is it making enough profit?
Sales to market capitalisation: not used much but useful. It is market capitalisation (the share price multiplied by the number of shares in issue) in relation to its sales.
Director dealing – should ring alarm bells either way.
Invest in companies you know and go with your gut instinct.
Source: Citywire