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 NAME ROLL NO.
PRIYANK DARJI 06
HARDIK NATHWANI 27
SHASHANK PAI 28
SAGAR PANCHAL 29
DHARMIK PATEL 32
KUSH SHAH 39
3 SIDDARTH TAWDE 46
 INTRODUCTION
 Fundamental analysis of a business involves
analyzing its Financial statement and health,
Its management and competitive advantage,
and its competitors and markets. When
applied to futures and forex, it focuses on the
overall state of the economy, interested,
production, earning and management.
1)To conduct a company stock valuation and
predict its probable price evolution
2)To make a projection on its business
performance, to evaluate its management
and make internal business decisions, to
calculate its credit risk
MEANING OF FUNDAMENTAL ANALYSIS
 Fundamental analysis is a method used to determine
the value of a stock by analyzing the financial data
that is 'fundamental' to the company.
 Fundamental analysis is a stock valuation method
that uses financial and economic analysis to predict
the movement of stock prices
 Fundamental analysis typically focuses on key
statistics in a company's financial statements to
determine if the stock price is correctly valued.
INTERPRETATION
 Economic Analysis:The economy is studied to
determine if overall conditions are good for the stock
market.

 Industry Analysis:The company's industry obviously

influences the outlook for the company.

 Company Analysis: This is usually done by studying

the company's financial statements.
FUNDAMENTAL ANALYSIS OF STOCKS IN
INDIA
 The process of fundamental analysis involves
examining the economic, financial & other
qualitative as well as quantitative factors related to
a security so as to determine its intrinsic value.
Two approaches in fundamental analysis
 Top-down approach:in this approach, an analyst
investigates both national and international
economic indicators, like energy prices, GDP
growth rates, inflation and interest rates
 Bottom-up approach:in this method, an analyst
starts the search with specific businesses,
irrespective of the industry or region.
FUNDAMENTAL ANALYSIS TOOL
 Earning per share
 Price earnings ratio (P/E ratio)
 Dividend payout ratio
 Dividend yield ratio
 Price to book ratio
 Book value
 price to sale
FUNDAMENTAL ANALYSIS :QUALITATIVE
FACTOR- THE COMPANY

 Business Model
 Competitive Advantage
 Management
 Corporate Governance
a)Financial and Information Transparency
b) Stakeholder Rights
FUNDAMENTAL ANALYSIS: QUALITATIVE
FACTORS - THE INDUSTRY

 Customers

 Market Share

 Industry Growth

 Competition

 Regulation
FUNDAMENTAL ANALYSIS: INTRODUCTION TO
FINANCIAL STATEMENTS
 The Major Statements
A)The Balance Sheet
B)The Income Statement

 Statement of Cash Flows

 10-K and 10-Q