EPS, P/E aur growth: fundamentals page

Transcript

What Hira says, in Roman Urdu, with the English translation beneath each line.

1. 0:04Assalam-o-Alaikum, welcome to danioPSX. Aaiye seekhein, financial independence ke liye.Assalam-o-Alaikum, welcome to danioPSX. Let's learn, for financial independence.
2. 0:14Ye hai lecture number thirteen. Aaj hum EPS, P/E aur growth samjhenge, fundamentals page parhna seekhenge, aur jaanenge ke sasta asal mein kya hai.This is lecture thirteen. Today we understand EPS, P/E and growth, learn to read the fundamentals page, and find out what cheap really means.
3. 0:31Pehle EPS, yaani earnings per share: profit after tax ko total shares se divide karein. Agar company ten billion kamaye aur five hundred million shares hon, to EPS twenty rupay.First EPS, earnings per share: profit after tax divided by the number of shares. If a company earns ten billion and has five hundred million shares, EPS is twenty rupees.
4. 0:46P/E ratio share price ko pichle twelve months ke EPS se divide karta hai. Ye batata hai ke aap current profit ke kitne saal ki keemat de rahe hain.The P/E ratio divides the share price by the last twelve months' EPS. It tells you how many years of current profit you are paying for.
5. 0:57Ab danioPSX ka fundamentals page. Yahan paanch sau se zyada listed companies ki earnings, growth, margins aur valuation hai, unke filed accounts se.Now the danioPSX fundamentals page. It has earnings, growth, margins and valuation for more than five hundred listed companies, from their filed accounts.
6. 1:08EPS column latest full financial year ka profit per share hai. EPS growth usay pichle saal se compare karta hai. Saath mein sales growth aur net margin bhi hain.The EPS column is profit per share for the latest full financial year. EPS growth compares it with the year before. Sales growth and net margin are there too.
7. 1:18Qtr EPS column latest quarter ko pichle saal ke usi quarter se compare karta hai. Ye zaroori hai, kyun ke bohat se PSX businesses seasonal hain.The quarterly EPS column compares the latest quarter with the same quarter last year. This matters because many PSX businesses are seasonal.
8. 1:30P/E aaj ki price ko us EPS se divide karta hai. Kam P/E matlab pichle saal ke har rupay profit ki kam keemat. Lekin page khud kehta hai, ye agle saal ke baare mein kuch nahi batata.P/E divides today's price by that EPS. A low P/E means a lower price for each rupee of last year's profit. But the page itself says it tells you nothing about next year.
9. 1:47Upar presets hain, jaise earnings growth, low P/E aur dividend payers. Sector aur Shariah-compliant filter bhi hai, aur kisi bhi column par click karke table sort kar sakte hain.At the top are presets, like earnings growth, low P/E and dividend payers. There are sector and Shariah-compliant filters too, and you can sort the table by clicking any column.
10. 2:03Asal sawal: sasta kya hai? Low P/E hamesha sasta nahi. Ho sakta hai market ko profit girne ki umeed ho, ya circular debt jaisa risk ho. Aur high P/E hamesha mehnga nahi.Now the real question: what is cheap? A low P/E is not always cheap. The market may expect profits to fall, or worry about a risk like circular debt. And a high P/E is not always expensive.
11. 2:24Tezi se grow karti company ka P/E zyada ho sakta hai. Isliye P/E hamesha same sector ke andar compare karein, kyun ke banks aur fertiliser companies ke typical P/E alag hote hain.A fast-growing company can deserve a higher P/E. So always compare P/E within the same sector, because banks and fertiliser companies have different typical P/Es.
12. 2:40Stock page par ye aasan hai. OGDC ke example mein Ratios tab company ka P/E, dividend yield, net margin aur EPS growth sector median ke saath dikhata hai.The stock page makes this easy. In the OGDC example, the Ratios tab shows the company's P/E, dividend yield, net margin and EPS growth next to the sector median.
13. 2:51Aur Financials tab mein saalana aur quarterly sales, profit after tax aur EPS hain. Yahan se growth ka trend aap khud dekh sakte hain.And the Financials tab has yearly and quarterly sales, profit after tax and EPS. From here you can see the growth trend yourself.
14. 2:59To aaj humne seekha: EPS aur P/E ka formula, fundamentals page ke columns, aur ye ke low P/E hamesha sasta nahi. Homework: fundamentals page par ek sector chunein aur P/E compare karein.So today we learned: the EPS and P/E formulas, the fundamentals page columns, and that a low P/E is not always cheap. Homework: pick one sector on the fundamentals page and compare P/E.
15. 3:13Next lecture mein hum seekhenge company results kaise parhein. Video achi lagi ho to subscribe karein. Ye sirf education ke liye hai, investment advice nahi. Allah Hafiz!In the next lecture we'll learn how to read company results. If you liked the video, please subscribe. This is for education only, not investment advice. Allah Hafiz!