What is Fundamental Analysis

[ANSON KALAVARAYIL]

What is Fundamental Analysis

Can you explain the ratios by working out with the financial data of any listed company?
if possible also give the standard ratios

Thank you

 

[sansin777]

I think fundamental analaysis is a definite science with approximate results where as technical analysis is an approximate science with definite results. Best used as a combination...Fundamental Analysis to zoom down on a stock and Technical Analysis to enter and exit a stock...thats what my conclusion seems to be...what would you say??

 

[subaash]

Can anyone explain all these parameters in detail?
Earnings per Share EPS
Price to Earnings Ratio P/E
Projected Earning Growth PEG
Price to Sales P/S
Price to Book P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Return on Equity

 

[santoshk]

is there any book in simple langwage on fundamental and techinical analasis?or any course of short duration?

 

[PGDIMES]

Can anyone explain all these parameters in detail?
Earnings per Share EPS
Price to Earnings Ratio P/E
Projected Earning Growth PEG
Price to Sales P/S
Price to Book P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Return on Equity

You will find all the definitions in Investopedia.

 

[PGDIMES]

is there any book in simple langwage on fundamental and techinical analasis?or any course of short duration?

Technical analysis of Financial Markets by John J. Murphy(for Technical analysis) and Security analysis and Portfolio Management by Donald Fischer & Ronald Jordan (for Fundamental Analysis) may be of help.

 

[PGDIMES]

What is Fundamental Analysis

Can you explain the ratios by working out with the financial data of any listed company?
if possible also give the standard ratios

Thank you

The fundamentals of a company depend on a lot of factors and the ratios given are only tip of an iceberg. PFA the excel sheet to understand the same: View attachment 12821 . Find the ratio analysis which is the heart of the fundamentals of the stock.

Happy trading.:clapping:

 

[rvm123]

All these parameters will help us in comparing the performance of one company with another.

EPS - This denotes the earning capacity of the company. For every share of say Rs.10/- if a company 'A' earns Rs.30/- and a company 'B' in the same industry earns Rs.20/-, the company 'A's profitability is considered to be better.

p/e ratio is market price divided by earnings per share. A company having lesser p/e ratio is better than a company having a higher p/e ratio.

price to book value - book value is (reserves and surplus divided by share capital multiplied by face value of the share) + face value of the share. If the price as compared to the book value is less, the company's shares are considered to be quoting at a lesser price.

Dividend payout ratio - This shows the dividend policy of the company. A company may earn an EPS of Rs.8/- and declare Rs.5/- per share as dividend and transfer Rs.3/- to reserves; another company may earn Rs,25/- as EPS and declare Rs.5/- per share as dividend and transfer Rs.20/- to reserves. the second company is very conservative and they are raising their book value by increasing the reserves and also by reducing the dividend payout their cash position will be better and their interest liability may be less.

Dividend yield - this is dividend divided by the cost price of the share expressed as a percentage.


Return on equity - this is the ratio of Net profit to the equity capital

 

[tkpatnaik]

Can any one tell the prospect of Adani power IPO.I have got around 72 [email protected] I sell on opening or keep.
Regards

 

[Ernest Palmeira]

a very nice explanation sirji. if you could only give a little more practical and better comparison based explanation it would be very useful in analysing the fundamentals of the stocks.