using key financial ratios on analyzing stock, particulary haio

Financial ratios are tools for interpreting financial statements to provide a basis for valuing securities and appraising financial and management performance. It provide an apple to apple comparison for the various listed stocks.
All the while i have being interested with using financial ratios onto the stock i follow. Before i buy a stock, i look at their ratios, particularly Return on equity (ROE), dividend yield (DY), price earning ratio (PE).

Actually there are many more ratios. Many of them i also never use and don't know how to use them. For Malaysian stock, how do we get such ratio?

PE is rather straight forward. It is Price/EPS. All newspaper will publish the PE of a stock. As such getting it is straight forward

Many newspaper also publish DY. However, at times i found that it differ from paper to paper. Some publish wrong info. so it is good you have alternative source for this.

ROE is bit difficult to get, relatively. I used to get my ROE from www.osk188.com.my , my stock broker website. But now i find it pretty tedious to go through its pages, in addition its data not very accurate either. Another nice way i like is to look at Dynaquest data book, however it is belated by few months when it gets to the rack. Since 2 years ago, we have another alternative for printed data, in the form of Stock Investor, which is a monthly digest. One can also calculate the ROE himself, i use the variant of EPS/NTA. There are different model available

If one attend a CFP class, he will learn about using some financial ratios to value stock, and learn about DDM. In malaysia, the more complicated DCF (discounted cash flow) is not taught but you get to learn a little bit of the theory. Most analyst uses DCF. I've chosen not to use such a complicated DCF model, not only because it is tedious to work out the model, but it involves some presumptions which i think is adding a lot of inaccuracies and uncertainties to the model. To me, DCF is at best a little bit better, if not worse, than simpler DDM or even the simple purchase based on ratio. My friends who studied CFP and CFA have shared with me what they have learnt.

i think in future it may be worth for me to use slightly more ratio onto my stock. For example, i think i am gonna look at the sharpe ratio of my entire portfolio. I'll share the outcome and the steps in future.

PS: my title reads ... haio, but haven't touched anything on haio. i think i touch it in next blog. basically want to compare it with other stocks in my portfolio to see how good/bad it is. by the way, today Haio is RM6.61. seems like my move last trading day is not too bad, at least short term wise