Tag: fundamental analysis of a company
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]
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]
Free Cash Flow to Firm (FCFF) – Forecasting P/L, B/S & C/F Statements
FCFF is one of the most widely used tool which is used to analyze the free cash available in the company by taking into account the free cash flow generated by the company in the future and arriving at the present value of the fore-casted cash flows as on today. [more]
3 Easy steps for conducting Fundamental Analysis
Fundamental Analysis is the study by which we can determine stocks actual value by focussing on certain parameters which can affect a company’s busines….[more]
Operating Profit vs EBIT (Earnings before Interest & Tax)
You might find that while doing analysis before investing into any company investor’s use Operating Profit and Earnings before Interest & Tax (EBIT) interchangeably. It is necessary to understand the [more]