Fundamental Analysis including Economy, Industry Company Analysis

Fundamental Analysis

1. Sri Ramakrishna College of Arts & Science Coimbatore – 06. Topic : Fundamental Analysis M.VADIVEL Assistant Professor Department of B.Com PA Sri Ramakrishna College of Arts & Science Coimbatore . M.Vadivel

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7. Fundamental Analysis M.Vadivel

8. Fundamental Analysis: Meaning The basic Fundamental Analysis meaning is a method that is used for measuring the intrinsic value of a stock or security. It mainly depends on the economic factors affecting the business and its financials. M.Vadivel

9. Fundamental Analysis: There are two different Fundamental Analysis Types and they are quantitative and qualitative. M.Vadivel

10. Qualitative Approach. Quantitative Approach M.Vadivel

11. Qualitative Approach: Fundamental Analysis Stocks that involve brand value, the financial performance of the company, management’s decisions, and other similar factors can be termed as a qualitative approach. M.Vadivel

12. Quantitative Approach: The quantitative approach includes numbers. It analyses the numbers in the financial statements and draws a conclusion about the price of the shares M.Vadivel

13. Basics of Fundamental Analysis For Fundamental Analysis Strategies, there are few Fundamental Analysis Basics which needs to be considered. These are primary factors which affect the analysis of the stock and they are Company’s revenue and its structure Growth of the revenue over the years Profit made by the company in the past years Debt structure of the company Rate of Turnover Employee management and management’s approach towards its employees M.Vadivel

14. Components of Fundamental Analysis M.Vadivel

15. Fundamental analysis consists of three main parts: M.Vadivel

16. Economic analysis Industry analysis Company analysis M.Vadivel

17. Economic analysis An economic analysis is a process in which business owners gain a clear picture of the existing economic climate, as it relates to their company's ability to thrive. Economists, statisticians, and mathematicians often carry out this analysis on behalf of for-profit and nonprofit businesses. M.Vadivel

18. Economic analysis Growth rate of Gross Domestic Product (GDP): Savings and investment: Industry Growth rate: Inflation: Agriculture and monsoons: Interest Rate: Government budget and deficit: The tax structure Balance of Payment (BOP) Demographic Factors Political Stability M.Vadivel

19. Economic Forecasting Techniques: Anticipative surveys Analysis of Key Indicators / Barometric Approach Econometric Building Opportunities Model Building / GNP Models Complex Statistical Methods. M.Vadivel

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24. Fundamental Analysis Fundamental analysis helps in evaluating a stocks intrinsic value in order to find out its long-term investing opportunities . This analysis will also consider the overall condition of the economy and elements such as production, interest rates, employment, earnings, housing, GDP, management, and manufacturing. M.Vadivel

25. Highlights of Fundamental Analysis: Fundamental analysts examine all factors which can have an impact on the securities value. This includes both macroeconomic and microeconomic factors. When the fair market value is greater than the market price, a stock will be considered as undervalued. A buy recommendation will be given. Fundamental analysis helps in evaluating a company’s stock and foresee its potential price evolution. The types of fundamental analysis are classified into two types - quantitative and qualitative. M.Vadivel

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