Concept of Fundamental Analysis

By - Shyam Advisory Rajkot

www.shyamadvisory.in
Fundamental analysis is a technique of stock valuation from the
economic and financial analysis to predict the market price movements.

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The most significant information can be analyzed solid financial reporting and
non-financial information, for example, estimates of the growth in demand
for competing products, industrial comparisons, and the whole economy

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For the fundamentalists, the stock price tends to its inherent value. If the inherent value of the
population is higher than the current market price, the investor buys the population, and
whether the inherent value of the population was below the market price of the sale of shares
to investors, this is the basic concept.

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Some expressions of fundamental
analysis

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1 - P / E Ratio (Price / EPS)

Also known as “other income”, stock

price divided by earnings per share. P / E ratio could
either reported gains of recent years, or use analysts
forecasts next year result. P / E give investors an idea
of how much they pay for the company to win.

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2 - EPS (Earnings per Share)
The proportion of company profits for each
outstanding common share. The amount is
calculated by dividing the number of shares of
common shares. For example, a company that
earned $ 20 million last year and 20 million shares to
report earnings per share of $ 1

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3 - Dividend
• Dividend is the sum of the benefits that the company
pays for people who own shares in the company. If
the company gets an advantage, some of this money
often get them back into society, and urged retained
earnings, and some of them be paid to shareholders
as dividends.

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4 - Values
• The carrying value of the asset or group of assets,
sometimes at the price they were originally
purchased (original cost), in many cases equal to the
purchase price.

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5 - Growth Stocks
Analysts estimate the profitability of the company
capital, net income and capital division of the
company. To classify as an increase in stocks, analysts
expect that at least 15% return on capital.

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Published By
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