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 willing to pay for an investment,
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
7. 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.
8. 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
10. 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.
11. 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
