Welcome to all

Presentation topic: Fundamental analysis

AND
Economic analysis
Economy Economic analysis
 Group No: 1
ID NAME PAGE NO

1808001 Md Rubel Mia

1808002 Moss Mokaroma

Akter
1808003 Md Rumon Bakshi

1808004 Md Mominur
Rahman
1808005 Sohana Akter

1808006 Lamia Akter

1808007 TANVIR AHMED

1808008 Niuton Chandra

Ray
 Fundamental Analysis

Fundamental analysis is method of determining a stock's fair market

value.

A fundamental analyst studies not only fundamental factors affecting

the company but also the fundamental factors affecting the industry.

Fundamental analysis is, in other words, a detailed analysis of the

fundamental factors affecting the performance of companies.
If market price is lower than actual price then it is called under
price Security.

If market price is higher than actual price then it is called

overpriced Security.

A basis strategy in Security investment is to buy under priced

Securities and sell overpriced Securities.
Economy industry company analysis
framework

Economy wide Industry wide

factors factors

Company specific
factors
 Key economic variables of fundamental
analysis:

1.Growth rates of 5. Exchange rates

national income.
2.Inflation. 6.Infrastructure

3.Interest 7.Monsoon

4.Government revenue, 8.Economic and political

expenditure and deficit stability
 ECONOMIC FORECASTING

What is economic forecasting?

Economic forecasting is attempting to predict the future condition of the
economy using a combination of important and widely followed indicators.

Advantage of economic forecasting

1.it helps assist the government in talking the steps required to achieve the
objective of economic development.

2.Farms formulate they are strategies based on economic forecast.

3.It encourages the Businessman to invest more and improve their profits.

4.Essential for individuals as it helps them in making prudent investment

decisions.
 Forecasting Techniques

Economic forecasting may be carried out for short-term periods (up to 3

years),intermediate term periods (3 to 5 years) and long-term periods (more than 5
years).
An investor is more concerned about short-term economic forecasts for periods ranging
from a quarter to three years.

Some of the techniques of short-term economic forecasting are:

1.Anticipatory Surveys 2.Barometric or Indicator Approach: The
economic indicators are leading indicators, coincidental indicators and
lagging indicators. 3.Econometric Model Building 4.Opportunistic
Model Building
Significance of Economic Forecasting in
Fundamental Analysis

Economic Forecasting

1.Economic Indicators

2.Leading Indicators

3.Coincidental Indicators

4.Lagging Indicators
 Chapter Summary

Fundamental analysis provides an overall view of the economy, industry, and

company specific factors favoring stock market investment. The first analysis
that is preferred in a top-down method is economic analysis. Such an
analysis scrutinizes both the macro and micro economic performance of the
country represented by the stock market. Economic analysis establishes the
relationship between movement of factors such as gross domestic product,
monetary policy, inflation, interest rate, international influences, consumer
sentiment, real effects, fiscal policy, and influences on long-term as well as
short term expectations on stock market performance.​

The behavior of stock prices relative to that of economic factors can

be established and can be used by investors to select the right
investments.​