When to buy a stock using advance fundamental analysis by Lalit Mohanty
When to buy a stock using advance fundamental analysis by Lalit Mohanty by Lalit Mohanty
English | July 9, 2024 | ISBN: N/A | ASIN: B0CXHWDGQG | 356 pages | EPUB | 2.11 Mb
English | July 9, 2024 | ISBN: N/A | ASIN: B0CXHWDGQG | 356 pages | EPUB | 2.11 Mb
When to buy a stock using advance fundamental analysis by Lalit Mohanty
Table of Contents
Chapter 1: Understanding Fundamental Analysis
What is Fundamental Analysis?
Key Components of Fundamental Analysis
- Financial Statements: Balance sheet, income statement, and cash flow statement.
- Ratios and Metrics: Price-to-earnings (P/E) ratio, earnings per share (EPS), return on equity (ROE), debt-to-equity ratio, etc.
- Qualitative Factors: Management quality, brand strength, market position, industry trends, and regulatory environment.
Balance Sheet
- Assets: Current assets, fixed assets, intangible assets.
- Liabilities: Current liabilities, long-term liabilities.
- Equity: Shareholder equity, retained earnings.
- Revenue: Sales, cost of goods sold (COGS).
- Expenses: Operating expenses, non-operating expenses.
- Net Income: Profit after all expenses are deducted from revenue.
- Operating Activities: Cash generated from core business operations.
- Investing Activities: Cash used for investing in assets.
- Financing Activities: Cash from issuing debt or equity, and cash used for repaying debt.
Profitability Ratios
Liquidity Ratios
Solvency Ratios
Valuation Ratios
Chapter 4: Qualitative Analysis
Management Evaluation
Competitive Analysis
Chapter 5: Economic and Market Analysis
Macroeconomic Factors
- Interest Rates: Impact on borrowing costs and consumer spending.
- Inflation: Effect on purchasing power and costs.
- Economic Cycles: Recession, recovery, boom, and their impact on stock prices.
- Investor Sentiment: Market mood and its influence on stock prices.
- Market Trends: Bull markets, bear markets, and market corrections.
Discounted Cash Flow (DCF) Analysis
Comparable Company Analysis
Precedent Transactions
Chapter 7: Timing the Market
Economic Indicators
- Leading Indicators: Economic data that predicts future economic activity (e.g., manufacturing orders, housing starts).
- Lagging Indicators: Data that follows economic activity (e.g., unemployment rates).
- Technical Analysis: Using charts and technical indicators to identify trends and patterns.
- Sentiment Indicators: Surveys and data on investor sentiment and market psychology.
- Market Overreaction: Identifying opportunities when markets overreact to news.
Successful Investments
- Apple Inc. (AAPL): Analysis of Apple’s rise to a trillion-dollar company.
- Amazon.com, Inc. (AMZN): Evaluation of Amazon’s growth strategy and market dominance.
- Enron Corporation: Examining the signs of financial manipulation and mismanagement.
- Lehman Brothers: Understanding the impact of excessive leverage and risk-taking.