PRESENTED BY:

TREIBORLANG KHARDEWSAW
MBA 3rd SEM
ROLL NO: 18MBAGEN23
WHAT IS FUNDAMENTAL ANALYSIS?

 Fundamental analysis is a method of evaluating a

security or asset by attempting to measure its intrinsic
value by examining related economic, financial and other
qualitative and quantitative factors.

 Fundamental analysts attempt to study everything that

can affect the security’s value including macroeconomic
factors and individually specific factor.
FUNDAMENTALS ANALYSIS
INCLUDE:
Economy analysis

Industry analysis

Company
analysis
ECONOMIC ANALYSIS
The level of the economy activity has an impact on
investment in many ways.
 If the economy grow rapidly, the industry can also be
expected to show rapid growth.
 When the level of economic activity is low the stock
prices are low, and when the economic activity is high
the stock prices are high.
The commonly analysed macro economic factor
are :-
 Gross Domestic product(GDP)
 Savings and Investment
 Inflation
 Interest rates
 Tax structure
 Others….
INDUSTRY ANALYSIS
 Industry analysis refers to an evaluation of the relative
strength and weakness of a particular industries.
 Industries can be classified on the basis of business
cycles:
 Growth industry
 Cyclical industry
 Defensive industry
 Cyclical growth industry
FACTORS TO BE CONSIDERED IN
INDUSTRY ANALYSIS
 Industry life cycle:
 Pioneering stage
 Rapid growing stage
 Maturity and stabilisation stage
 Declining stage
 Growth of the industry
 Cost structure and profitability
 Competition
 Government policy
COMPANY ANALYSIS
 Fundamental analysis seeks to determine the
intrinsic value of a company's stock. But since
qualitative factors, by definition, represent aspects
of a company's business that are difficult or
impossible to quantify, incorporating that kind of
information into a pricing evaluation can be quite
difficult
the company-specific qualitative
factors
 Business Model
 Company Culture
 Management
 Corporate Governance
Thank you