Value Company focuses on providing regular dividends to its investors, while Growth Company

aims to generate capital gains. The annual return of the general partner (GP) is 8.4%, which is
comparable to the bank's fixed deposit rate of 8-8.5%. Therefore, investing in the bank seems to
be a more favorable option.

When it comes to analyzing investment opportunities, there are three main types:

1. Fundamental Analysis: This involves scrutinizing the income statement to determine the
intrinsic value of a company. It seeks to answer the question of a company's worth.

2. Technical Analysis: This approach relies on market information and trading data to determine
the opportune timing for entering a trade. It helps answer the question of when to invest.

3. Market Sentiment Analysis: This analysis considers the perceptions and opinions of market
participants. It aims to understand how and why certain stocks perform the way they do.

Valuations can be done using two approaches:

1. Absolute Valuation: This method determines a company's value based solely on its own
information, such as Dividend Discount Model (DDM) or Free Cash Flow to Equity (FCFE)
analysis.

2. Relative Valuations: This approach compares the valuation of a company to similar firms in
the industry.

P/E Ratio (Price-to-Earnings Ratio) is a commonly used metric:

For example, let's consider Square, which has a P/E ratio of 12, and Parama Industry, which
has a P/E ratio of 17. If the projected earnings per share (EPS) for Square is 13, the Square's
price would be 17 * 13 = 221.

NAV (Net Asset Value) is calculated as:

NAV = (Total Assets - Total Liabilities) / Number of Shares

It is important for the share price to be higher than the NAV since the NAV is not adjusted for
inflation, as it is based on historical figures.