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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
Fundamental analysis ppt
Fundamental analysis ppt

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Fundamental analysis ppt

  • 1. 1
  • 2. 2
  • 3. 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
  • 4. 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
  • 5. 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.
  • 6. 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.
  • 7. 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.
  • 8. 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
  • 9. FUNDAMENTAL ANALYSIS :QUALITATIVE FACTOR- THE COMPANY  Business Model  Competitive Advantage  Management  Corporate Governance a)Financial and Information Transparency b) Stakeholder Rights
  • 10. FUNDAMENTAL ANALYSIS: QUALITATIVE FACTORS - THE INDUSTRY  Customers  Market Share  Industry Growth  Competition  Regulation
  • 11. 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