Fundamental analysis ppt
Download as PPTX, PDF43 likes72,528 views
Fundamental analysis involves analyzing a company's financial statements, management, competitive advantages, and markets to determine the intrinsic value of its stock. It focuses on factors like earnings, production, management, and the overall economy for futures and forex. The key aspects of fundamental analysis include examining economic, financial, qualitative and quantitative factors of a company and its industry to predict stock price movements and evaluate business performance and management. Some tools used are earnings per share, price-earnings ratio, dividend yield, and analysis of statements like the balance sheet and income statement.
Fundamental analysis ppt
- 1. 1
- 2. 2
- 3. NAME ROLL NO. PRIYANK DARJI 06 HARDIK NATHWANI 27 SHASHANK PAI 28 SAGAR PANCHAL 29 DHARMIK PATEL 32 KUSH SHAH 39 3 SIDDARTH TAWDE 46
- 4. INTRODUCTION Fundamental analysis of a business involves analyzing its Financial statement and health, Its management and competitive advantage, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interested, production, earning and management. 1)To conduct a company stock valuation and predict its probable price evolution 2)To make a projection on its business performance, to evaluate its management and make internal business decisions, to calculate its credit risk
- 5. MEANING OF FUNDAMENTAL ANALYSIS Fundamental analysis is a method used to determine the value of a stock by analyzing the financial data that is 'fundamental' to the company. Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices Fundamental analysis typically focuses on key statistics in a company's financial statements to determine if the stock price is correctly valued.
- 6. INTERPRETATION Economic Analysis:The economy is studied to determine if overall conditions are good for the stock market. Industry Analysis:The company's industry obviously influences the outlook for the company. Company Analysis: This is usually done by studying the company's financial statements.
- 7. FUNDAMENTAL ANALYSIS OF STOCKS IN INDIA The process of fundamental analysis involves examining the economic, financial & other qualitative as well as quantitative factors related to a security so as to determine its intrinsic value. Two approaches in fundamental analysis Top-down approach:in this approach, an analyst investigates both national and international economic indicators, like energy prices, GDP growth rates, inflation and interest rates Bottom-up approach:in this method, an analyst starts the search with specific businesses, irrespective of the industry or region.
- 8. FUNDAMENTAL ANALYSIS TOOL Earning per share Price earnings ratio (P/E ratio) Dividend payout ratio Dividend yield ratio Price to book ratio Book value price to sale
- 9. FUNDAMENTAL ANALYSIS :QUALITATIVE FACTOR- THE COMPANY Business Model Competitive Advantage Management Corporate Governance a)Financial and Information Transparency b) Stakeholder Rights
- 10. FUNDAMENTAL ANALYSIS: QUALITATIVE FACTORS - THE INDUSTRY Customers Market Share Industry Growth Competition Regulation
- 11. FUNDAMENTAL ANALYSIS: INTRODUCTION TO FINANCIAL STATEMENTS The Major Statements A)The Balance Sheet B)The Income Statement Statement of Cash Flows 10-K and 10-Q