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1.

Tata Consultancy Services


2. 3. 4. 5. 6. The largest IT Company in India providing business and outsourcing solutions, TCS continue to innovate and breakthrough thereby retaining number 1 rank. Market Value: $56.9 Bn Revenue: $10 Bn Profit: $2 Bn

7. 8. 9.

2. Oil & Natural Gas


Market Value: $50.5 Bn Revenue: $29 Bn

10. Profit: $5.5 Bn 11. 12. A multinational company involved in exploring hydrocarbons, also a producer of crude oil and natural gas in India, ONGC has projects abroad as well.

3. Reliance Industries
Market Value: $50.4 Bn Revenue: $70 Bn Profit: $4 Bn

A giant operating in refining, oil and gas and petrochemicals businesses, RIL is now ready to get into the telecom/ broadband business by partnering with RCOM.

4. ITC
Market Value: $44.1 Bn Revenue: $5.31 Bn Profit: $1.2 Bn

Being a leader in hotel, paper business and cigarettes, ITC has various resonating products to offer like gold flake, classmate, ITC hotels, Wills Lifestyle and a wide range of FMCG offerings etc.

5. Coal India

Market Value: $37.4 Bn Revenue: $12.2 Bn Profit: $3 Bn

The worlds largest coal miner, awarded with the Maharatna status in country, one of Indias most valuable companies, Coal India is the largest employer in the country.

6. Infosys
Market Value: $30.5 Bn Revenue: $6.7 Bn Profit: $1.6 Bn

A multinational and the third largest IT Company, Infosys remains persistent in providing consulting, engineering and business solutions, with TCS ranked at 1.

7. HDFC Bank SBI HDFC HOME


ICICI

9.HINDALCO 10. COAL INDIA 8. TATA STEEL 7.ONGC TATA MOTORS HINDUSTAN PETROL SBI

BHARAT PETROL RELIAN IND OIL

http://www.pg.com/annualreport2012/files/PG_2012_AnnualReport.pdf

http://businesstoday.intoday.in/bt500/ http://personalfinance.byu.edu/?q=node/750

A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because a company's shares can go up and down in price, or the company could go bankrupt or forgo its dividend payments, investors expect to earn on average a higher return for owning the shares than they would expect for a lessrisky asset. This risk premium is a reward for taking on that extra risk.
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Calculating the Risk Premium of the Market Step 1


Estimate the expected total return on stocks. Add the dividends and net stock buybacks of the stock market. Divide this by the total value of the market, and add in the growth rate of dividends and net stock buybacks.

Step 2
Estimate the expected risk-free rate of return. Calculate the yield to maturity on 10-year Treasury Inflation Protected Securities (TIPS), as these securities adjust their yield to match inflation. Related Reading: How to Calculate a Company's Stock Price

Step 3
Subtract the expected risk-free rate from the expected market return. This is the expected risk premium for stocks.

Calculate the Company's Beta Step 1


Take the average return on the market and on the stock for a period of years.

Step 2
Subtract the average return on the market by the return of each particular year. Do the same for the individual stock.

Step 3
Multiply the difference of each year's market return from the average market return by the difference of each year's stock return by the average stock return.

Step 4
Add the products of each year from the previous step. This is the covariance of the returns on the stock and the market.

Step 5
Square the difference between each year's market return and the average market return, and divide by the number of years in the calculation. This is the variance of market returns. Divide the covariance of stock and market returns by the variance of market returns. This is the Beta of the stock's returns to the market returns.

Calculating the Risk Premium on a Stock using the Capital Asset Pricing Model Step 1
Multiply the individual company's Beta by the market risk premium.

Step 2
Add the risk-free rate to the product of the company's Beta and the market risk premium. This is the individual company's risk premium.

hen a company's stock price flashes gains and losses on your television screen, it tells one side of the story -the public ticker face. A new investor can be swayed by what looks on the surface like a "cheap" or "expensive" price. But an old-hand first unpacks the numbers -- growth rate, sales, earnings -- to discover if a company is undervalued (a bargain) or overvalued (a pricey risk). Pros ask a set of critical questions and use a basket of equations whenever they analyze a company, and so should you.
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Step 1
Check the company's most recent quarterly report (10-Q) and look up their earnings per share (EPS). You'll find two figures: The number of shares of stock the company issued and the earnings. To calculate the EPS by hand, divide the earnings by the number of shares. You'll quickly realize that you can't compare Company A to Company B based on price alone, even if they're trading at similar prices. The number of shares matters when you calculate earnings.

Step 2
Divide the the company's price-per-share by its EPS to get the price-to-earnings ratio, also called the P/E ratio. This number can stump new investors. But it's part of an investing vocabulary and helps you come to terms with the difference between price and value. The P/E defines how much each dollar of earnings costs the investor. You pay almost twice as much for a dollar of earnings for a company with a P/E of 85 than for a company with a P/E of 45. Related Reading: How to Calculate the Cost Basis of a Stock With Multiple Purchases

Step 3
Factor in the sales and you have another measure of value. Divide the share price by the total sales and you have the price-to-sales ratio. Keep this in mind when a company catches your investment eye. Once considered an old-fashioned and dated metric, the P/S ratio has been dusted off and used to cut through the fluff of earnings statements. It's risky and difficult for companies to fudge sales (revenue) numbers. Historically, companies with low P/S ratios beat companies with low P/Es.

Step 4
Include the company's growth rate and calculate the PEG rate. Take the P/E and divide it by the current growth rate. For example, FatWallet Company has a P/E of 67 and a growth rate of 25 percent. Its PEG is 67/25 = 2.68. According to MSN Money, stocks with PEGs higher than 1.0 are trading above their growth rate; those with PEGs around 1.0 match their projections.

nclude earnings from your company's investments to its total annual revenues.

Related Articles How to Determine a Company's Total Revenue How to Calculate Revenue of a Business What Is a Company's Annual Report? How to Calculate Sales Revenue in Accounting

How to Calculate Value-to-Revenue Ratios How to Calculate Productivity in Sales Revenue

It is necessary to keep track of your company's annual revenues for your tax return and for your company's financial statements. Your annual revenue is the total income generated from your business over the last year. This includes income from the sale of products, the sale of services and income generated from companyowned investments. By calculating your company's annual revenue, you measure the current sales performance of your company and the income it is generating for yourself and the other owners.
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Step 1
Look up the total units of inventory sold by your business over the past year in your sales records.

Step 2
Multiply your total sales by your average sales price to calculate your annual revenues from selling goods. Related Reading: How to Calculate Productivity in Sales Revenue Step 3 Look up the total hours of services sold over the past year in your sales records.

Step 4
Multiply your total service hours by the average sales price of your company's services to calculate the total revenue generated by services.

Step 5
Look up total income generated by company-owned investments on your investment statements. This could include stock dividends, interest payments and capital gains from the sale of investments.

Step 6
Add revenues generated from the sale of goods, the sale of services and from investments together. The total equals your company's annual revenues for the year.

http://www.wikihow.com/Calculate-Beta

Calculating Risk Premiums and Expected Returns for Stocks


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Investing in the stock market is an exercise in balancing risk and potential reward, and calculating risk and returns is a big part of that balancing act. In a perfect investing world, you would know the risk of any stock and the price and potential reward would reflect the risk premium of investing in the stock. In this guide, we look at what risk-free investments are, and show you how you can calculate returns using risk premiums.

What Is Risk Premium?


The risk premium for a stock tells you how much over a risk-free investment the stock should returnor reward you for taking the risk. You can use the risk premium to calculate the expected return on a stock for the amount of risk involved. For example, a small, high-tech stock may have a very high risk premium because many of these companies fail. The ones that succeed should reward investors for taking the risk with a high return. On the other hand, a large, well-established company (General Electric, for example) is unlikely to fail. For the relative safety of investing in G.E., investors should not expect a huge returnin other words the risk premium for investing in G.E. is low.

Risk-Free Investments
To better understand risk premium, we start with what investors can expect from a risk-free investment. U.S. Treasury issues (Bills, Notes, Bonds) are the gold standard for safety and the 3-month Treasury Bill is often used as the measure of risk free investing.

U.S. Treasuries pay almost nothing in interest compared to other investments. The reason is they have no risk premium. The securities are backed by the full faith and credit of the U.S. Government, making them the standard for no-risk investments. It is important to note this, since when we compute the risk premium for a stock, we start with what the risk-free returns. If the return on a 3-month U.S. Treasury Bill is 2%, then any stock that is more risky would have to return more than 2%, since that is a risk-free return. A good starting point is to assume that the minimum risk premium is 3% over the risk-free investment. If a new 3-month Treasury Bill returns 2%, then the minimum risk premium-adjusted return is 5%. The safest stock investment should return at least 5%. Any stock that is more risky will have a higher risk premium. For example, a small, high-tech stock might have a risk premium of 12%, meaning investors should expect a return of at least 14% (risk-free 2% plus risk premium of 12% = 14% return).

Calculating Expected Return Using Risk Premium


The simple method of calculating return using risk premium is: risk-free return + risk premium = expected return Here are the steps to calculating the risk premium for an individual stock: Step 1: Find the stocks betaAll stocks have a beta, which is a calculation of the volatility of the stock compared to volatility of the market. A stock with a beta of 1 is expected to move up and down with the market. A stock with a beta of less than 1 will be less volatile than the market and a stock with a beta of more than 1 will be more volatile than the market. You can find a stocks beta on any financial website. Step 2: Calculate the risk premium for the marketFor this purpose, the market is the S&P 500 Index and you can find the average return on any financial website. The market risk premium is the average market return minus the risk-free return. Step 3: Calculate the risk premium for a stockThe risk premium for an individual stock is the stocks beta (step 1) times the risk premium for the market (step 2).

For example, if the stocks beta is 1.3 (step 1) and the market premium is 6.5% (step 2) the risk premium of the stock is 8.45% (step 3). Returning to the basic formula of: Risk free return + risk premium = expected return 2% + 8.45% = 10.45% You can use the expected return calculation to make decisions about possible investments and to check on how existing investments are performing. Are you taking too much risk for not enough reward. As with most financial calculations, there are many variations on this formula and you can find risk premium calculators that do the math for you. Risk premium is directly related to the expected return from a stock, whether you are evaluating the stock or checking the performance of one you own. Now that you know what risk-free investments are, and how to calculate the risk premiums of stocks, the stock market should seem a little less of a scary place, and you can start investing with confidence. Good luck!

http://www.tradingeconomics.com/india/stock-market

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