“Fundamental Analysis is method of finding out the future price of a stock which an investor wishes to buy.”

1. Presented by
Ms. Gagandeep Kaur
Assistant Professor, Commerce

2. Fundamental Analysis
“Fundamental Analysis is method of
finding out the future price of a stock
which an investor wishes to buy.”

3. Objectives of Fundamental
Analysis
 To identify the under priced and overpriced
securities
 To view investments as long term decisions.
 To beat the market.

4. Fundamental Analysis
Framework
Top down
Approach
(EIC)
Bottom up
Approach
(CIE)

5. Economics Analysis
 To determine the investment strategy.
 Economic analysis involves study of economic trends
in the company.
 To study economic policies
 To study relationship between economic trend and
economic policies

6. Economics Analysis Factors
 Inflation Rate
 Government Policy
 Political Conditions
 GDP
 Population
 Natural Resources
 BOP

7. Industrial Analysis
Purpose of industry analysis is to seek industries that
are expected to grow faster than the real rate of GNP.

8. Company Analysis
“Company analysis is a method of assessing the
competitive position of a firm, its earning and
profitability, the efficiency with which it operates, its
financial position and its future aspects with respect to
the earnings of its shareholders.”