Category: Fundamental Analysis
How Investors Evaluate a Company?
Now this a really important topic to discuss if you are looking to create long term wealth out of stocks. For long-term wealth creation it is extremely important to understand the company you are going to invests in. This entire process of giving a refined look to a company is knows as Fundamental Analysis and this is one of the best ways to understand as to how investors evaluate a company for long-term investment. [more]
Difference between Offer For Sale, Qualified Institutional Placement and Follow on Public Offer
The Government has plans to reduce its stake and monetize its investments to bridge the fiscal gap and budgetary deficit appearing from the corporate tax rate cuts and many more fiscal prudence deficits. To divest a promoter’s stake, you must have read that the company will reduce its stake via OFS or Offer for Sale.[more]
Forecasting Methodology of Stock Markets
During our school or college either our parents or our teachers used to forecast our results before its announcements and we used to be very panicky about its outcome. Similarly, the companies before announcing their results have a mechanism in place by Analysts who forecasts their results based on some data points. Thus Forecasting is a technique that uses historical data as inputs for making estimates that are predictive in determining the direction of future trends.[more]
How to use Trading Multiples for Stock Selection
Trading multiple is a valuation technique used to value a company by comparing company’s financial valuation metrics to those of its peers. Typically, the multiples are a ratio of some valuation metric (such as market capitalization, enterprise value) to some financial performance metric (such as sales, EBITDA, earnings)etc.[more]
Share Valuation – Overview, Types, Methods and Faqs
Before investing in any company, it is important for us to understand the real worth of its shares. This will be possible if we can calculate the intrinsic value of the share. Intrinsic value refers to the value which is theoretical in nature. This means that the value is not affected by its market price.[more]