Fundamental analysis
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This document discusses fundamental analysis techniques for analyzing companies and industries. It provides examples of various fundamental indicators that can have favorable or unfavorable impacts on a company or industry, such as GDP growth rates, interest rates, and inflation levels. It also discusses analyzing a company's strengths, weaknesses, opportunities, and threats. Common fundamental analysis ratios are examined, such as return on equity. Different types of charts and indicators used in technical analysis are described, including candlestick charts and moving averages.
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Wm 3 Fundamental Analysis stock market analysis 1
Fundamental analysis evaluates a security's underlying value by examining related economic, financial and other qualitative and quantitative factors. It includes examining a company's financial statements and health, its management and competitive advantages, and its competitors and markets. Technical analysis, on the other hand, studies past stock price movements and patterns to predict future price changes. Fundamental analysis uses financial ratios to evaluate a company's profitability, operational efficiency, liquidity, leverage and market performance. Common financial ratios include return on equity, current ratio, debt-to-equity, and earnings per share.
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SAPM Lecture 6Analysis
Fundamental analysis evaluates a security's underlying value by examining related economic, financial and other qualitative and quantitative factors. It includes examining a company's financial statements and health, its management and competitive advantages, and its competitors and markets. Technical analysis, on the other hand, studies past stock price movements and patterns to predict future movements. Key fundamental ratios help analyze a company's profitability, operational efficiency, liquidity, leverage, and market performance. These ratios provide insights into a company's financial health and ability to operate and grow successfully.
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1. The document discusses various types of security market indexes, including stock market indexes and bond market indexes.
2. Stock market indexes track sections of the stock market and include price weighted indexes like the Dow Jones Industrial Average, value weighted indexes, and global indexes.
3. Bond market indexes measure the performance of bond markets but are more difficult to construct due to the range of bond qualities. Composite indexes combine stock and bond indexes to measure overall market performance.
Unit 6 company valuation
There are three main methods for valuing a company: asset valuation, market multiples, and discounted cash flow. Asset valuation values the company based on its assets as shown on the balance sheet, either at book value or adjusted market value. Market multiples compare ratios such as price-to-book or enterprise value to EBITDA to similar public companies. Discounted cash flow estimates future dividends or cash flows from the company and discounts them to calculate a net present value.
Relative Valuation - Techniques & Application
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Company Valuation PowerPoint Presentation Slides
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
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The document discusses security market indices and their role as indicators and barometers of economic performance and behavior. It notes that ideal indices should represent changes in value of all listed stocks and typical price movements. Factors in determining indices include selecting representative share samples, determining each share's relative importance, and averaging into a single reliable measure. The document also prompts the reader to identify products that impact their daily lives and pinch their budgets the most due to price changes.
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Fundamental analysis evaluates a security's underlying value by examining related economic, financial and other qualitative and quantitative factors. It includes examining a company's financial statements and health, its management and competitive advantages, and its competitors and markets. Technical analysis, on the other hand, studies past stock price movements and patterns to predict future movements. Key fundamental ratios help analyze a company's profitability, operational efficiency, liquidity, leverage, and market performance. These ratios provide insights into a company's financial health and ability to operate and grow successfully.
Security Market Indexes
1. The document discusses various types of security market indexes, including stock market indexes and bond market indexes.
2. Stock market indexes track sections of the stock market and include price weighted indexes like the Dow Jones Industrial Average, value weighted indexes, and global indexes.
3. Bond market indexes measure the performance of bond markets but are more difficult to construct due to the range of bond qualities. Composite indexes combine stock and bond indexes to measure overall market performance.
Unit 6 company valuation
There are three main methods for valuing a company: asset valuation, market multiples, and discounted cash flow. Asset valuation values the company based on its assets as shown on the balance sheet, either at book value or adjusted market value. Market multiples compare ratios such as price-to-book or enterprise value to EBITDA to similar public companies. Discounted cash flow estimates future dividends or cash flows from the company and discounts them to calculate a net present value.
Relative Valuation - Techniques & Application
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Company Valuation PowerPoint Presentation Slides
Get ready-made Company Valuation PowerPoint Presentation Slides to analyse all the profit and net value your business has made. Conduct a thorough evaluation of a company’s management, capital structure, future earning prospects, and more with the help of professionally designed company valuation PPT presentation templates. Determine the current worth of a business and assess all aspects of a business. This deck comprises of several company valuation PowerPoint templates like valuation methodology, valuation steps, company valuation methodologies, determining free cash flow, valuation results, business due-diligence process, strategic due-diligence methodology, and more. Incorporate business valuation PowerPoint slideshow to estimate the selling price of the business. Use business valuation methods PowerPoint techniques for valuing a business asset such as cost approach, cost to build, replacement cost, market approach, discounted cash flow, forecast future cash flow, etc. Grab access to the company valuation complete PowerPoint deck for a business analysis. Employ a few jocular expressions with our Company Valuation Powerpoint Presentation Slides. It helps insert a bit of humor.
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The document provides information on investment analysis, including definitions, methods, and concepts. It discusses two main types of analysis: fundamental analysis and technical analysis. Fundamental analysis examines basic company data like earnings, sales, and financial statements to determine a stock's intrinsic value. Technical analysis uses historical market data like prices and trading volumes to identify patterns that can predict future price movements. The document also covers the efficient market hypothesis, which proposes that stock prices reflect all publicly available information.
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Fundamental analysis involves examining qualitative and quantitative factors related to a security to determine its intrinsic value. This includes analyzing macroeconomic factors like the overall economy and industry conditions, as well as company-specific factors like financial statements and management. There are two approaches to fundamental analysis: economy analysis which focuses on outputs like GDP, unemployment, and inflation; and industry analysis which evaluates demand, supply, and competitiveness. Company analysis delves into the balance sheet, financial position, products/services, and uses financial ratios to evaluate profitability, liquidity, activity, debt, market performance, and capital budgeting. Fundamental analysis provides valuable insights but should be approached cautiously given potential biases.
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The document discusses brand valuation and outlines several key points:
1. Initially, tangible assets were seen as the main business value, but recognition of intangible value like brands grew with the increasing gap between book and market values.
2. Brands are valuable assets that can be quantified and valued using various approaches like discounted cash flow analysis and calculating the brand's contribution to profits.
3. A five step process for brand valuation includes market segmentation, financial analysis, demand analysis, competitive benchmarking, and calculating the brand value.
Valuation presentation
Okay, let's break this down step-by-step:
* Offer price per share is $48
* Mix is 20% cash, 80% stock
* To calculate the exchange ratio, we take the stock portion as a percentage of the total consideration
* Stock portion is 80% of $48, which is 0.8 * $48 = $38.40
* Cash portion is 20% of $48, which is 0.2 * $48 = $9.60
* Total consideration is $38.40 stock + $9.60 cash = $48
* To get the exchange ratio, we take the stock portion ($38.40) and divide it by the acquirer's stock price.
Fundamental analysis
Fundamental analysis is a method of evaluating securities by examining related economic, financial and other qualitative and quantitative factors to measure a security's intrinsic value. It involves analyzing the overall economy, industries, and individual companies. Some techniques of fundamental analysis include analyzing demand and supply, price elasticity, balance tables, and regression analysis. The goal is to determine a security's true value and identify if it is underpriced or overpriced in order to make buy and sell decisions.
P/E Ratio
The P/E Ratio or ‘Price to Earnings’ Ratio looks at the relationship between a stock price and company’s earnings.
Pe ratio
The P/E ratio, or price-to-earnings ratio, is a valuation metric that compares a company's stock price to its earnings per share. It is calculated by dividing the market value per share by the annual earnings per share. The P/E ratio indicates what the market is willing to pay for a company's current and future earnings. A higher P/E ratio may show that the market expects higher future growth, but could also mean the stock is overvalued. Conversely, a lower P/E ratio could signal lack of market confidence but may also represent an undervalued stock with strong future potential. There is no single correct P/E ratio as it depends on an investor's willingness to pay for a company
Relative valuation
This document discusses relative valuation, which values an asset based on comparable assets currently priced in the market. It outlines the steps in relative valuation, including analyzing the subject company, selecting comparable companies, choosing valuation multiples, calculating multiples for comparables, and valuing the subject company. It also discusses various valuation multiples used in relative valuation like P/E, P/B, P/S, EV/EBITDA, and their fundamental determinants. Best practices for using multiples are also presented.
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This document discusses the concepts and process of fundamental analysis for making investment decisions. It explains that fundamental analysis examines the intrinsic value of a company by analyzing the economy, industry, and company. The analysis involves 3 phases - evaluating the economy, industry life cycle stages (pioneering, expansion, stagnation), and company financial ratios to determine if the stock is under or overvalued compared to market price. Making investment decisions requires understanding these fundamental analysis concepts.
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This document provides an overview of fundamental and technical analysis for investing in the Philippines. It discusses various fundamental analysis tools like price-earnings ratios, income statements, and balance sheets. It also covers technical analysis indicators like moving averages, support and resistance levels, and chart patterns. The document uses examples of companies listed on the Philippine Stock Exchange to demonstrate how to use these analytical tools and approaches for investment decisions in the local market.
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This document discusses various valuation methods used in mergers and acquisitions, including asset-based valuation, earnings-based valuation using capitalization of earnings and PE ratios, dividend-based valuation using growth models, CAPM-based valuation, and free cash flow valuation. It emphasizes that the fair value of a company is typically determined by averaging the results of two or more methods to account for different factors and avoid reliance on a single approach.
Pe ratio
The price-to-earnings (P/E) ratio is a valuation metric that compares a company's stock price to its earnings per share. The P/E ratio is calculated by taking the market value per share and dividing it by the annual earnings per share. A higher P/E ratio indicates that investors are paying more for each unit of current earnings, suggesting they expect higher future earnings. A lower P/E ratio may suggest the stock is undervalued or that investors have less confidence in the company's future prospects. Interpreting P/E ratios requires considering factors like growth potential, risk, past performance, and economic conditions. P/E ratios alone do not provide a complete picture and should be used alongside other analytical
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The document discusses the Efficient Market Hypothesis (EMH). Some key points:
- EMH proposes that market prices fully reflect all available information and investors cannot consistently earn abnormal returns. It originated from the Random Walk Hypothesis.
- There are three forms of EMH (weak, semi-strong, strong) based on the information reflected in prices. Research initially supported weak and semi-strong forms but questioned strong form.
- Over time research identified anomalies like momentum and mean reversion that appear to allow abnormal returns, bringing EMH into question. Behavioral finance emerged examining psychological factors.
- While still debated, EMH is no longer considered the sole determinant of market behavior.
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This document discusses business strategy analysis for assessing a firm's performance and value. It covers:
1. Strategy analysis identifies a firm's profit drivers and risks by probing business reality qualitatively.
2. Industry analysis assesses industry profit potential using models like five forces analysis of competition.
3. Competitive strategy analysis evaluates a firm's cost leadership or differentiation strategies.
4. Corporate strategy analysis examines value from operating multiple businesses under one firm.
5. Strategy analysis guides financial analysis by linking strategies and financial metrics over time.
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4 FINAL REPORT
This document provides an executive summary and introduction to a project conducting fundamental analysis of five banking companies in India over 45 days. The analysis included economic, industry, and company analysis to derive an intrinsic value for each stock and determine if it was overvalued or undervalued. Data was collected from annual reports and company websites and analyzed using techniques like CAMEL rating and intrinsic value calculation. The purpose was to forecast future stock prices and provide a basis for informed investment decisions.
shares fundamental analysis
Fundamental analysis examines the underlying forces that affect the economy, industries, and companies. It involves analyzing the economy, specific industries, and individual companies to forecast market movements and identify shares that will outperform the market. This includes tools like GDP, inflation, and interest rates to analyze the economy, cross-sectional industry performance and industry life cycles to analyze industries, and financial ratios, cash flow analysis, and Porter's Five Forces to analyze companies.
SAPM-123.pptx
The document discusses fundamental analysis for evaluating investment opportunities. It covers analyzing the economy, industries, and individual companies. For economic analysis, it examines factors like GDP, inflation, and interest rates. Industry analysis focuses on growth stage, competition level, and government policies. Company analysis evaluates management, financial statements, earnings forecasts, and financial/non-financial indicators. The goal is to identify sound investments with a reasonable expected return by studying the fundamentals.
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Investment Analysis
The document provides information on investment analysis, including definitions, methods, and concepts. It discusses two main types of analysis: fundamental analysis and technical analysis. Fundamental analysis examines basic company data like earnings, sales, and financial statements to determine a stock's intrinsic value. Technical analysis uses historical market data like prices and trading volumes to identify patterns that can predict future price movements. The document also covers the efficient market hypothesis, which proposes that stock prices reflect all publicly available information.
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Fundamental analysis involves examining qualitative and quantitative factors related to a security to determine its intrinsic value. This includes analyzing macroeconomic factors like the overall economy and industry conditions, as well as company-specific factors like financial statements and management. There are two approaches to fundamental analysis: economy analysis which focuses on outputs like GDP, unemployment, and inflation; and industry analysis which evaluates demand, supply, and competitiveness. Company analysis delves into the balance sheet, financial position, products/services, and uses financial ratios to evaluate profitability, liquidity, activity, debt, market performance, and capital budgeting. Fundamental analysis provides valuable insights but should be approached cautiously given potential biases.
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This document compares and contrasts fundamental analysis and technical analysis. Fundamental analysis uses financial data like earnings, dividends, and sales to determine a stock's intrinsic value, while technical analysis examines past stock price movements to predict future trends. The comparison chart outlines key differences - fundamental analysis has a long-term outlook based on company fundamentals, while technical analysis takes a short-term approach based only on historical price data. The document also lists 10 common valuation measures used in fundamental analysis, such as earnings per share, price-to-earnings ratio, dividend yield, and return on equity.
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The document discusses brand valuation and outlines several key points:
1. Initially, tangible assets were seen as the main business value, but recognition of intangible value like brands grew with the increasing gap between book and market values.
2. Brands are valuable assets that can be quantified and valued using various approaches like discounted cash flow analysis and calculating the brand's contribution to profits.
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Valuation presentation
Okay, let's break this down step-by-step:
* Offer price per share is $48
* Mix is 20% cash, 80% stock
* To calculate the exchange ratio, we take the stock portion as a percentage of the total consideration
* Stock portion is 80% of $48, which is 0.8 * $48 = $38.40
* Cash portion is 20% of $48, which is 0.2 * $48 = $9.60
* Total consideration is $38.40 stock + $9.60 cash = $48
* To get the exchange ratio, we take the stock portion ($38.40) and divide it by the acquirer's stock price.
Fundamental analysis
Fundamental analysis is a method of evaluating securities by examining related economic, financial and other qualitative and quantitative factors to measure a security's intrinsic value. It involves analyzing the overall economy, industries, and individual companies. Some techniques of fundamental analysis include analyzing demand and supply, price elasticity, balance tables, and regression analysis. The goal is to determine a security's true value and identify if it is underpriced or overpriced in order to make buy and sell decisions.
P/E Ratio
The P/E Ratio or ‘Price to Earnings’ Ratio looks at the relationship between a stock price and company’s earnings.
Pe ratio
The P/E ratio, or price-to-earnings ratio, is a valuation metric that compares a company's stock price to its earnings per share. It is calculated by dividing the market value per share by the annual earnings per share. The P/E ratio indicates what the market is willing to pay for a company's current and future earnings. A higher P/E ratio may show that the market expects higher future growth, but could also mean the stock is overvalued. Conversely, a lower P/E ratio could signal lack of market confidence but may also represent an undervalued stock with strong future potential. There is no single correct P/E ratio as it depends on an investor's willingness to pay for a company
Relative valuation
This document discusses relative valuation, which values an asset based on comparable assets currently priced in the market. It outlines the steps in relative valuation, including analyzing the subject company, selecting comparable companies, choosing valuation multiples, calculating multiples for comparables, and valuing the subject company. It also discusses various valuation multiples used in relative valuation like P/E, P/B, P/S, EV/EBITDA, and their fundamental determinants. Best practices for using multiples are also presented.
Unit 2 fundamental analysis
This document discusses the concepts and process of fundamental analysis for making investment decisions. It explains that fundamental analysis examines the intrinsic value of a company by analyzing the economy, industry, and company. The analysis involves 3 phases - evaluating the economy, industry life cycle stages (pioneering, expansion, stagnation), and company financial ratios to determine if the stock is under or overvalued compared to market price. Making investment decisions requires understanding these fundamental analysis concepts.
Fundamental and technical analysis
This document provides an overview of fundamental and technical analysis for investing in the Philippines. It discusses various fundamental analysis tools like price-earnings ratios, income statements, and balance sheets. It also covers technical analysis indicators like moving averages, support and resistance levels, and chart patterns. The document uses examples of companies listed on the Philippine Stock Exchange to demonstrate how to use these analytical tools and approaches for investment decisions in the local market.
Valuation methods used in mergers and acquisitions
This document discusses various valuation methods used in mergers and acquisitions, including asset-based valuation, earnings-based valuation using capitalization of earnings and PE ratios, dividend-based valuation using growth models, CAPM-based valuation, and free cash flow valuation. It emphasizes that the fair value of a company is typically determined by averaging the results of two or more methods to account for different factors and avoid reliance on a single approach.
Pe ratio
The price-to-earnings (P/E) ratio is a valuation metric that compares a company's stock price to its earnings per share. The P/E ratio is calculated by taking the market value per share and dividing it by the annual earnings per share. A higher P/E ratio indicates that investors are paying more for each unit of current earnings, suggesting they expect higher future earnings. A lower P/E ratio may suggest the stock is undervalued or that investors have less confidence in the company's future prospects. Interpreting P/E ratios requires considering factors like growth potential, risk, past performance, and economic conditions. P/E ratios alone do not provide a complete picture and should be used alongside other analytical
Technical analysis Fundamentals
Technical analysis is a method of evaluating securities using historical price and volume data rather than fundamental factors like intrinsic value. It relies on the assumptions that markets discount all known information, prices move in trends, and history tends to repeat itself. Technicians analyze charts looking for patterns and trends to predict future price movements. Key concepts include identifying uptrends and downtrends using higher highs/lows and lower highs/lows, analyzing different trend lengths, and identifying support and resistance levels where prices tend not to fall or rise beyond. Understanding trends and support/resistance allows technicians to trade in the direction of the prevailing trend.
Efficient Market Hypothesis
The document discusses the Efficient Market Hypothesis (EMH). Some key points:
- EMH proposes that market prices fully reflect all available information and investors cannot consistently earn abnormal returns. It originated from the Random Walk Hypothesis.
- There are three forms of EMH (weak, semi-strong, strong) based on the information reflected in prices. Research initially supported weak and semi-strong forms but questioned strong form.
- Over time research identified anomalies like momentum and mean reversion that appear to allow abnormal returns, bringing EMH into question. Behavioral finance emerged examining psychological factors.
- While still debated, EMH is no longer considered the sole determinant of market behavior.
Chapter 02 strategy analysis
This document discusses business strategy analysis for assessing a firm's performance and value. It covers:
1. Strategy analysis identifies a firm's profit drivers and risks by probing business reality qualitatively.
2. Industry analysis assesses industry profit potential using models like five forces analysis of competition.
3. Competitive strategy analysis evaluates a firm's cost leadership or differentiation strategies.
4. Corporate strategy analysis examines value from operating multiple businesses under one firm.
5. Strategy analysis guides financial analysis by linking strategies and financial metrics over time.
Security analysis'
Fundamental Analysis and Nature of Equity Instruments are the topics that have been discussed in this presentation
Differences between Fundamental Analysis and Technical Analysis
A lot of traders especially the beginner traders are being confuse about the differences between the fundamental and technical analysis. Here we explain the difference between fundamental and technical analysis, and discuss how to determine which investing approach is best for you.
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This document discusses different types of fundamental analysis used to evaluate investments including economic analysis, industry analysis, and company analysis. It outlines factors considered in each type of analysis such as macroeconomic factors for economic analysis, the industry life cycle and competitive conditions for industry analysis, and financial and non-financial internal and external factors for company analysis. The goal of fundamental analysis is to evaluate the past and expected future performance of economies, industries, and companies to inform investment decisions.
4 FINAL REPORT
This document provides an executive summary and introduction to a project conducting fundamental analysis of five banking companies in India over 45 days. The analysis included economic, industry, and company analysis to derive an intrinsic value for each stock and determine if it was overvalued or undervalued. Data was collected from annual reports and company websites and analyzed using techniques like CAMEL rating and intrinsic value calculation. The purpose was to forecast future stock prices and provide a basis for informed investment decisions.
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Valuation methods used in mergers and acquisitions
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Capital markets can accelerate economic development by providing companies a source of capital, mitigating moral hazard through stock prices, enabling change of ownership through takeovers, allowing individuals to diversify risks, and generating wealth for nations. However, capital markets face challenges like inefficiency, low awareness, concentrated wealth, and low understanding of risks. Investing is important to combat inflation and allow one's assets and lifestyle to grow over time. Investors should choose investments that balance appropriate risk and returns, and analyze companies through both fundamental analysis of financial statements and technical analysis of past price movements.
Fundamental analysis
This document provides an overview of fundamental and technical analysis techniques used to analyze stocks. It discusses macroeconomic, industry, and company analysis as part of fundamental analysis. Key factors are analyzed for the economy, industry classifications, and individual companies. Technical analysis techniques covered include charts, trends, support/resistance levels, moving averages, oscillators, and Dow theory. Mathematical indicators are used to smooth price movements and identify overbought and oversold conditions.
Earning capacity ratios
Ratio analysis is a valuable analytical technique that allows businesses to study end-of-period financial reports to inform future decisions. Ratios can be presented as percentages or ratios and are used to assess profitability, stability, and effectiveness. Key profitability ratios include gross profit ratio, net profit ratio, and expense-to-sales ratio. These ratios indicate ability to earn income, generate gross/net profit from sales, and control expenses. Higher ratios may suggest good performance while lower ratios could mean inability to cover costs or earn satisfactory profits. Recommendations include improving sales, minimizing costs of goods sold, and setting expense budgets.
Stanford CS 007-07 (2019): Personal Finance for Engineers / Investing
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given in November 2019. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-07 (2020): Personal Finance for Engineers / Investing
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 27, 2020. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
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Stanford CS 007-07 (2018): Personal Finance for Engineers / Investing
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on November 6, 2018. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
FINANCE FOR BUSINESS
Finance is one of the important aspects of the business. It is the art of securing and monitoring the company’s money. Business finance lies in accounting for keeping business activities smoothly in the long-term.
A sample PPT assignment by OnlineAssignmentsHelp.com
Financial reports and ratios
Analytical techniques like ratio analysis, vertical analysis, horizontal analysis, and trend analysis allow businesses to study financial reports and make informed decisions. Key financial ratios analyze profitability, financial stability, and management effectiveness. Profitability ratios like gross profit ratio and net profit ratio indicate ability to earn income. Current ratio and quick ratio measure short-term liquidity. Equity ratio and debt ratio show sources of financing. Accounts receivable and inventory turnover ratios evaluate management policies. Comparing ratios to benchmarks helps assess performance.
Portfolio management
Portfolio management & security analysis is depicted with respect to the operations in different financial markets.
Ipm
This document discusses several key economic and market analysis ratios and indicators. It defines dividend yield as annual dividend per share divided by market price per share. It also explains that price-earnings ratio is calculated as market price per share divided by earnings per share. The document notes that composite economic indexes like leading, coincident, and lagging indicators are used to determine turning points in the business cycle. It also discusses the relationship between stock markets and the overall business cycle.
20130915 第5回valuation勉強会
1) The document discusses valuation techniques and principles from a course on corporate finance and valuation. It covers topics like calculating enterprise value using a discounted cash flow model and how return on invested capital (ROIC) and revenue growth drive value.
2) The document also discusses how intrinsic stock value tracks ROIC and growth, and how the stock market reflects the underlying economic performance of companies. Investor emotions can cause short-term mispricing but markets are generally efficient in the long-run.
3) Total shareholder returns are determined by performance relative to expectations. While ROIC and growth are key drivers of long-term returns, short-term returns are more influenced by changes in investor expectations.
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Fundamental analysis
- 6. •INDUSTRY •ANALYSIS •Economic Analysis •Company Analysis •Fundamental analysis can be composed of many different aspects.
- 8. INDICATOR FAVOURABLE IMPACT UNFAVOURABLE IMPACT GDP/GROWTH RATE HIGH SLOW GROWTH RATE INTEREST RATES LOW HIGH TAX RATES LOW HIGH INFLATION LOW HIGH BALANCE OF PAYMENT POSITIVE NEGATIVE FOREIGN EXCHANGE POSITION HIGH LOW FISCAL DEFICIT LOW HIGH
- 9. • It involve a close investigative scrutiny of companies financial and non financial aspects with a view to identify strength ,weaknesses , and future business prospects. •MARKETING SUCCESS •BUSINESS MODEL •COMPETITIVE ADVANTAGE
- 10. STRENGTH WEAKNESSESS THREAT OPPURTUNITIES Latest technology Lower delivered cost. Established products. Committed manpower. Advantageous location. Strong finance. Untrained labour force. Strained cash flows Family fund Poor public image Loose control. Price war Intensive competition Suppliers Power cuts Growing domestic demand Expanding export market Cheap labour Low interest rates Booming capital market
- 12. •Analysis of industries financial position •Review of trends like seasonal fluctuation •External influence on industry like govt. laws •Review of competition like present and future.
- 16. fundamental analysis studies the business at a basic fundamental level to judge its financial health. It examines the key ratios of a business to determine if the stock’s current price is undervalued or overvalued.
- 19. dividing net earnings after tax by shareholders’ equity If the company has made Rs 50 lakh this year with shareholders’ equity at 5 lakh, then the ROE is 5000000/ 500000 = 10%. ROE is expressed in percentage terms. A higher ROE signifies a more efficient company. It means the company can increase its profitability without any additional capital
- 24. •POINT CHART •LINE CHART •FIGURE CHART •BAR CHART •CANDLESTICK CHART
- 27. Candlestick chart trace their root to japan,where technical analysis has been in use fot centuries. Like bar chart , candlestick chart provide four prices per data point entry. Opening and closing prices and high and low prices during the period.
- 40. Symmetrical triangles occur when two trend lines converge toward each other and signal only that a breakout is likely to occur—not the direction
- 43. •BALLINGER •BANDS •MOVING •AVERAGE Price-based indicators incorporate information contained in market prices. A moving average is the average price of a security over a set amount of time. By plotting a security's average price, the price movement is smoothed out. .