Which are the best metaverse stocks in India right now?
As per Equitymaster's Screener, here is a list of the best metaverse stocks in India right now...
Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.
What is metaverse?
Here's the short and simple answer.
The metaverse is an extension of our real world into the digital realm. It's a space where you can do everything you do in this real world, on the internet.
And.. many more things that would not be possible in the real world.
The metaverse is a virtual 3D world...with a difference. Instead of just looking at a screen, you can literally go inside it.
Think of it as an extension of the internet. A 3D virtual internet that you can enter and interact with.
How can You Access the Metaverse?
You can enter the metaverse via your virtual 'avatar'. The technology behind this is called Augmented Reality (AR) and Virtual Reality (VR).
With the help of AR and a headset, you will be able to - in the near future - enter the metaverse. Your avatar can interact with the elements in the metaverse just like you do in the real world.
VR is the virtual environment your avatar will enter. It's what makes up the metaverse environment.
The metaverse integrates AR and VR to create a new digital universe. This universe can be filled up with an unlimited number of experiences.
How should you value metaverse stocks?
Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.
Two commonly used financial ratios used in the valuation of stocks are -
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.
Where can I find a list of metaverse stocks?
The details of listed metaverse companies can be found on the NSE and BSE website.
For a curated list you can check out our list of metaverse stocks.