Stock performance is a measure of the return from stock investment for a certain period, be it daily, weekly, monthly, quarterly or annually depending on the investor's wishes and each investor will have their own standard and way to evaluate or analyze the performance of their shares. There are several factors that every stock investor needs to consider, because performance in the previous year does not guarantee the same performance for the current and future years. To evaluate stock performance, we not only monitor price fluctuations, but we also need to consider many factors such as interest rates, economic and government policies, climate, etc. The following are several methods that stock investors can use as follows:
1. Total Return
Stock price is formed by several components such as capital gain/loss, dividends obtained from price movements, if the price rises then profit and vice versa if the share price falls.
2. Stock Index
Each investor will determine different criteria and goals or expected returns. Investors can use stock indices to compare stocks as a whole. If the shares they own have better performance then it means their shares have great potential.
3. Compare with similar stocks
Stock investors also need to compare the performance of the shares they hold with other similar shares or in the same industry.
4.Evaluate company income
Investors can also evaluate or analyze business income from their income statement or from retained earnings, so that real performance can be known.
5. PEG ratio
PEG or Profit/Earning Gross, can also be applied to evaluate stock performance which is assessed from price, income and stock growth. If the PEG is below 1 then the stock value is underpriced and if it is above 2 it is considered overpriced.
6. Price to Earnings Ratio
The price to earnings ratio can be calculated from the share price divided by the company's profit per share. So investors can also compare shares from various issuers that have the same industry.
1. Total Return
Stock price is formed by several components such as capital gain/loss, dividends obtained from price movements, if the price rises then profit and vice versa if the share price falls.
2. Stock Index
Each investor will determine different criteria and goals or expected returns. Investors can use stock indices to compare stocks as a whole. If the shares they own have better performance then it means their shares have great potential.
3. Compare with similar stocks
Stock investors also need to compare the performance of the shares they hold with other similar shares or in the same industry.
4.Evaluate company income
Investors can also evaluate or analyze business income from their income statement or from retained earnings, so that real performance can be known.
5. PEG ratio
PEG or Profit/Earning Gross, can also be applied to evaluate stock performance which is assessed from price, income and stock growth. If the PEG is below 1 then the stock value is underpriced and if it is above 2 it is considered overpriced.
6. Price to Earnings Ratio
The price to earnings ratio can be calculated from the share price divided by the company's profit per share. So investors can also compare shares from various issuers that have the same industry.
