FUNDAMENTAL ANALYSjjjjjjjIS - Basics.pptx
- 2. FUNDAMENTAL ANALYSIS It’s simple mean to access the shares fundamentally. OBJECTIVE: To find stocks intrinsic value Intrinsic Value of Share or Stock Intrinsic value is the anticipated or calculated value of a company, stock, currency or product determined through fundamental analysis. It includes tangible and intangible factors. Intrinsic value is also called the real value and may or may not be the same as the current market value. It is also referred to as the price a rational investor is
- 3. MEANING FA attempts to find out the true value of stocks so that the investors can decide to buy or not to buy the stock at current market price.
- 4. ECONOMY ANALYSIS In this strength & weakness of economy is assessed. Macro level economic factors assessed in this like: Performance of the economy in the past Situation in Present Expectations in Future Growth
- 5. Factors to be assessed in ECONOMY ANALYSIS GDP INFLATION FOREX RESERVE BALANCE OF PAYMENTS GROWTH OF INDUSTRIES INFRASTRUCTURAL FACILITIES INTEREST RATES TAX STRUCTURE AGRICULTURE AND MONSOON
- 6. Tools Survey Indicator Approach – Leading , Lagging, Coincident Economic Model Building Approach Diffusion Index
- 7. Company Analysis CA refers to the process of evaluating the company's profitability, Profile, Products & Services. It is a process carried out by investors to evaluate securities.
- 8. Factors Non-Financial Indicators – Strategy of the company, Past performance of the company, Management of the Company Financial Indicators – Income Statement, Balance Sheet, Statement of Changes in FS
- 9. INDUSTRY ANALYSIS This indicates that whether the industry is growing , expanding or Obsolescence. It is done because selection of right kind of industry is very important for successful investment.
- 10. FACTORS Government attitude towards Industry Sales Trends & Earning Performance Labour Conditions Technology Competitive Pressure Raw Materials & Inputs Future Prospects of Industry Other Factors – Cost Structure, Demand for Product, Installed & Utilised Capacity
- 11. Tools SWOT Porter’s 5 Force Model
- 12. Role of Fundamental Analysis Predicting Future Price Movements Determining Fair Value Evaluating Management Determine Companies abilities to beat his competitors Analyze companies' financial strength
- 13. THANK YOU