NAME ROLL NO. PRIYANK DARJI 06 HARDIK NATHWANI 27 SHASHANK PAI 28 SAGAR PANCHAL 29 DHARMIK PATEL 32 KUSH SHAH 393 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 evolution2)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 companys 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 companys industry obviously influences the outlook for the company. Company Analysis: This is usually done by studying the companys financial statements.
FUNDAMENTAL ANALYSIS OF STOCKS ININDIA 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 :QUALITATIVEFACTOR- THE COMPANY Business Model Competitive Advantage Management Corporate Governance a)Financial and Information Transparency b) Stakeholder Rights
FUNDAMENTAL ANALYSIS: QUALITATIVEFACTORS - THE INDUSTRY Customers Market Share Industry Growth Competition Regulation
FUNDAMENTAL ANALYSIS: INTRODUCTION TOFINANCIAL STATEMENTS The Major Statements A)The Balance Sheet B)The Income Statement Statement of Cash Flows 10-K and 10-Q