Face Value
Basics of Stock MarketThe original value of a share as listed in the company's books.
Formula
Equity Share Capital / Total Number of Shares
Why it matters
Used to calculate dividends and for stock splits.
Indian example
Related terms
Book ValueMarket Value
Learn the concept
Equities (NSE, BSE, IPO Process) →From the research
Valuation
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A single year of cash flow is a snapshot. Three years is a story. Learn what the trend reveals about earnings quality, funding, and sustainability.
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Two companies can report the same ROE for very different reasons. DuPont analysis shows why an ROE built on leverage is not the same as one built on quality.
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A high P/E is not simply 'expensive'. It is the market pricing in expectations. Learn how to read what a P/E implies, and the two traps that catch beginners.