The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Building your own valuation model for NEPSE companies helps you estimate true value based on earnings, cash flow, and growth potential. Using tools like DCF and relative valuation, investors can identify undervalued stocks and make rational, independent investment choices.
Advanced screening tools in Nepal, such as MeroLagani and Sharesansar, allow investors to filter companies by EPS, ROE, P/E, and other ratios efficiently. These tools transform manual analysis into strategic decision-making, helping identify fundamentally strong and undervalued stocks in NEPSE.
Quarterly reports reveal short-term performance trends, while annual reports confirm long-term sustainability. Comparing both helps investors identify consistent growth, management efficiency, and true business potential in NEPSE-listed companies.
NRB’s data on liquidity, interest rates, deposits, and credit directly shapes NEPSE’s fundamental trends. Rising liquidity and falling rates favor bullish momentum, while tight credit and inflation pressure trigger market slowdowns. Understanding central bank indicators allows investors to stay ahead of market direction.
Professional analysts in Nepal rely on indicators like GDP, Inflation, Interest Rate, Liquidity, Remittance, and BoP to assess economic health and market direction. Understanding these signals helps investors anticipate changes, manage risk, and make informed, long-term decisions in NEPSE.
Corporate actions like bonuses, dividends, and rights shares directly affect a company’s fundamentals. While bonus and right shares dilute earnings, cash dividends represent genuine profit sharing. Evaluating the intention and financial health behind these actions is key to understanding long-term value in NEPSE.
Market bubbles in NEPSE occur when prices rise beyond fundamentals due to emotion and speculation. By tracking valuation ratios, earnings growth, and financial indicators like EPS, ROE, and D/E, investors can detect overvaluation early and safeguard their portfolios from sudden collapses.
Behavioral finance teaches investors to recognize emotional biases and manage them through discipline and analysis. In NEPSE, controlling fear, greed, and herd mentality allows traders to make rational, long-term profitable decisions instead of emotional reactions.
Institutional investors in NEPSE use disciplined fundamental analysis—focusing on financial metrics, macroeconomic factors, and valuation models—to make informed, long-term investment decisions. Their data-driven approach ensures stability, consistency, and sustainable returns across market cycles.
Post-IPO evaluation in NEPSE helps investors measure a company’s real performance against its IPO promises. By tracking financial indicators like EPS, ROE, P/E ratio, and dividend policies, investors can identify growth trends, manage risks, and make informed decisions for long-term success.