FUNDAMENTAL ANALYSIS

Definition
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Fundamental Analysis is a tool to evaluate the Underlying Assets for making Investment in order to get High Returns. Stocks Commodities(Gold) Currency's (Forex)

  

Fundamental Analysis of Stocks Its a systematic way to find out the future value of a Share value. nothing but Intrinsic value.

Intrinsic Value:
The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.

Steps in Fundamental Analysis

Economy Analysis

Industry Analysis

Company Analysis

Approaches to Analysis
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Top-Down Approach Market to Individual Stocks

Bottom-Down Approach individual companies can do well even in an industry that is not performing very well.

TOP-DOWN
Economy Analysis

BOTTOM-UP
Economy Analysis

Industry Analysis

Industry Analysis

Company Analysis

Company Analysis

Economy Analysis
GDP y Inflation y Physical Policy y Monetary Policy y Political Stability(In & Out) y Exchange Rates y Un-Employment Rate y Balance Of Payments(Economic Stability)
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Industry Analysis
Industry Life Cycle y Product Life Cycle y Study of the structure and characteristics of an Industry. y Analysis of Profit Potential Industries(Porters Five force Model)
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Company Analysis
Company Analysis

Quantitative Factors

Qualitative Factors

Qualitative Factors
Management y Ownership and Insider Sales y Competitive Advantage y Business Model y Corporate Governance
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Quantitative Factors
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Analysis of Financial Statements

Profit & Loss Account it explains the profits and losses between the two particular Periods. Balance Sheet it explains the Overall Assets and Liabilities that a Company Possess for a Particular Year End. Cash Flow Statement It explains In and Out Flow of Cash into Company through Different Activities.

Ratio Analysis is the Important tool that will evaluate the Financial Health of a Company.
        

Debt Equity Ratio EPS P/E Ratio Dividend Yield Ratio Dividend Payout Ratio Return on Equity Return on Investments Return on Sales Working Capital Ratio

Thank You