Table of Contents
Dedication
Executive Summary
Acknowledgement
Chapter 1
Introduction
Background of Study
Purpose of study
Methodology
Environment of Study
Limitation of Study
Chapter 2
Literature Review
Evaluation of Business Performance
Financial Performance
Factors playing Important Role in Financial Performance
Dividends
Importance of Dividend
Retained Earnings
Financial Statement
Why Researcher selected Ratio Analysis?
Ratio
Analysis
Ratio Analysis
Which Ratios to be Considered
Profitability
Profitability Ratio
Importance of Profitability Ratio
Profit Margin
Gross Profit Margin
Net Profit Margin
Return on Assets - ROA
Return on Equity - ROE
P/E Ratio
Asset Turnover
Share Price
Determining Share Prices
Summary
Chapter 3
About Samples & KSE
KSE
Sample Companies
Pakistan State Oil
Attock Petroleum Limited
Sui Southern Gas Company
Chapter 4
Analysis & Findings
Comparison – Share Price and TAT
Comparison – Share Price and ROE
Comparison – Share Price and ROA
Comparison – Share Price and Gross Profit Margin
Comparison – Share Price and Net Profit Margin
Comparison – Share Price and Price to EPS
Conclusion
Recommendations
Abbreviations
References
Dedication
This research report is dedicated to my loving parents and my respectable teachers, without their prayers
and guidance I was not able
to reach this stage.
Executive Summary
Do you want to invest in a Company by buying shares, and you are facing difficulties in selection of growing and financially strong companies. Definitely, you will eager to invest in such company which is financially strong. Instead of analyzing entire financial statements just by observing share prices of company you will be able to decide.
This is an effort by researchers to check and analyze that whether “Share Price Serves as a Barometer for Business Performance” or not. Research is based on the same analyses does price of share is signal of firm’s good financial condition and performance. This report is an introduction to considerable factors for research, limits, scope and methodology of study. In this report readers will find out about performance of business and how to evaluate its performance. Later on, comparison of share prices done with the selected ratios of sample companies which are Pakistan Sate oil, Sui Southern Gas Company and Attock Petroleum.