Fundamental analysis of stocks
Fundamental analysis of stocks
Published 5/2025
Duration: 1h 13m | .MP4 1280x720 30 fps(r) | AAC, 44100 Hz, 2ch | 580 MB
Genre: eLearning | Language: English
Published 5/2025
Duration: 1h 13m | .MP4 1280x720 30 fps(r) | AAC, 44100 Hz, 2ch | 580 MB
Genre: eLearning | Language: English
Analyse the financial statements of stocks
What you'll learn
- Introduction
- Profit and Loss statement analysis
- Balance Sheet analysis
- Cash Flow statement analysis
- Example : How to analyse the company
- Identify the fair value of stock
Requirements
- No requirements or prerequisites
Description
Fundamental analysislooks at intrinsic factors to determine a company's value, as opposed to its current price or market trends. This approach looks beyond investor sentiment and company marketing to determine if the stock price is over- or undervalued. Fundamental analysis is a method of evaluating the intrinsic value of a stock. This form of analysis combines external events and influences, as well as financial statements and industry trends. Remember the intrinsic value/fair value of a stock does not change everyday. To understand what is that fair value, you should take the help of fundamentals, which are what drives prices up and down.
Fundamental analysis uses three sets of data. One, historical data is used to know things were earlier. Two, publicly known information about the company including announcements made by the management, and what others are saying about the company. Three, information that is not known publicly but is useful i.e. instances of how management handles crises, situations etc. When you buy a banana from the market, you pay a price that you think is right. If a fruit seller asks you to pay Rs 50 for a banana is that right? In the same way, if a banana is available for 50 paise is that right? You know that one dozen of bananas should cost Rs 40-50. So, per banana cost is about Rs 4. So, if the banana is available at a steep discount or steep premium, there must be valid reasons why the asking price is such. When you go to buy a stock, for example Infosys, you know the current market price is Rs 780 per share. This price is only the market price i.e. some seller must be asking for this rate to sell theInfosys stock.
Your job as a long term investor is to buy the stock at a far lower price than the intrinsic value. So, if the true value ofInfosys stockis Rs 900, buying it for Rs 780 is logical. On the other hand, if the true value of Infosys stock is Rs 700, buying it at Rs 780 is not a good deal for you.
Who this course is for:
- Beginners who want to learn fundamental analysis of stocks
More Info