2. Fundamental Analysis
Fundamental analysis
the practice of evaluating the information
contained in financial statements, industry
reports, and economic factors to determine
the intrinsic value of a firm
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3. Fundamental Analysis
Intrinsic value
the “true” or economic, value of a firm
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4. Fundamental Analysis
Fundamentalist
analysts who utilize analysis in an attempt
to forecast future stock price movements
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5. Fundamental Analysis
versus Technical Analysis
Technical analysis
examination of supply and demand for
securities to determine trends in price
movements of stocks or financial
instruments
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6. Fundamental Analysis
versus Technical Analysis
Technicians
the term given to analysts who examine
stocks and financial markets using
technical analysis
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7. Economic Analysis
Forecasting business cycles
to determine when to expect changes in the
business cycle, or the direction in which
aggregate economic activity is moving
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8. Economic Analysis
Business cycle
the movement in aggregate economic
activity as measured by the gross domestic
product (GDP)
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9. Economic Analysis
Expansion
increasing economic activity
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10. Economic Analysis
Contraction
decreasing economic activity
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11. Economic Analysis
Gross Domestic Product (GDP)
a measure of all of the goods and services
produced in the economy during a
specified time period
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12. Economic Analysis
Recession
two consecutive quarters of economic
contraction, or decline, in the GDP
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13. Business Cycles - Monetary
Policy and Fiscal Policy
Monetary Policy
the means by which the RBI influences
economic conditions by managing the
nation’s money supply
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14. Business Cycles - Monetary
Policy and Fiscal Policy
Fiscal Policy
Government spending, which is primarily
supported by the government’s ability to
tax individuals and businesses
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15. Business Cycles - Monetary
Policy and Fiscal Policy
Deficit spending
situation that occurs when the government
spends more than it collects in taxes
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16. Industry Analysis
Defensive, or countercyclical, industries
industries that tend to perform best when
the economy is in a contraction or
recession, but are generally the poorest
performers in expanding economies
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17. Industry Analysis
Industry life cycle
the various phases of an industry with
respect to its growth in sales and its
competitive conditions
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19. Evaluating the Firm’s
Financial Position
Financial statement analysis
comparison to other similar firms
forecast direction for future
predict earnings and dividends
risk evaluation
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20. Stock Valuation Techniques
Valuation using P/E ratios
ratio computed by dividing the current
market price per share, P0, by the earnings
per share, EPS0
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21. LearningMadeSimpleTM
Learning Made Simple is initiative taken by few people earlier related to
the Corporate World whose aim is to provide quality education and
training to those who wish to excel in their career path. Learning
Made Simple is an association who works on a no profit no loss
basis and provide training and development in the era of Financial
Planning, Financial Management, AMFI, NCFM, Management
Concepts, Soft Skills, Leadership, Personality Development, Goal
Setting, Marketing Management, Behavioral Science, NLP and
various other segments. You can get in touch with us by sending
email on kaushal@thefinancialplanners.in
