hi, i have been working in an fmcg company which has many subsidiaries and is into various consumer products

Question

.I have been given the profit n loss account of all the companies .....I have been asked in which of them i would like to invest my money if given a chance....what should i base my answer on?

Answer 1

There are many ways to evaluate a company. If it is a subsidiary of another company, there may not be a market for its shares, and then an evaluation would do you no good. In some cases you may be better off buying the parent company rather than one of its subsidiaries. Essentially, you would want to evaluate a company's profitability, liquidity, solvency, and cash flows. Discussing each of these can take a chapter in a book. Good luck with your research.