| Fundamental Analysis
| |
| | stock fundamental analysis expressions
|
| DefinitionFundamental analysis is a stock
| |
| | that are more important:#1- EPS:
|
| valuation method that uses financial and
| |
| | (Earnings Per Share) The portion of a
|
| economic analysis to predict the movement
| |
| | company's profit allocated to each
|
| of stock prices.The fundamental
| |
| | outstanding share of common stock. The
|
| information that is analyzed can include
| |
| | amount is computed by dividing net
|
| a company's financial reports, and
| |
| | earnings by the number of outstanding
|
| non-finanical information such as
| |
| | shares of common stock. For example, a
|
| estimates of the growth of demand for
| |
| | corporation that earned $10 million last
|
| competing products, industry comparisons,
| |
| | year and has 10 million shares
|
| and economy-wide changes.Fundamentalists
| |
| | outstanding would report earnings per
|
| General StrategyTo a fundamentalist, the
| |
| | share of $1.#2- P/E Ratio: (Price/
|
| market price of a stock tends to move
| |
| | EPS)Also called its "earnings multiple",
|
| towards its intrinsic value. If the
| |
| | Price of a stock divided by its earnings
|
| intrinsic value of a stock is above the
| |
| | per share. The P/E ratio may either use
|
| current market price, the investor would
| |
| | the reported earnings from the latest
|
| purchase the stock, and if the intrinsic
| |
| | year or employ an analyst's forecast of
|
| value of a stock was below the market
| |
| | next year's earnings. P/E gives investors
|
| price, the investor would sell the
| |
| | an idea of how much they are paying for a
|
| stock.To start a fundamentalist makes an
| |
| | company's earning power.An important
|
| examination of the current and future
| |
| | notice here is that the P/E ratio is
|
| overall health of the economy as a whole.
| |
| | ultimately not an objective measure; a
|
| In this step you should attempt to
| |
| | high P/E ratio might show an overvalued
|
| determine the direction and level of
| |
| | stock, or it might reflect a company with
|
| interest rates.After you analyzed the
| |
| | high potential for growth.#3- Dividend
|
| overall economy then analyze firms
| |
| | Dividend is an amount of the profits that
|
| individually. You should analyze factors
| |
| | a company pays to people who own shares
|
| that give the firm a competitive
| |
| | in the company. When a company earns a
|
| advantage in its sector such as
| |
| | profit, some of this money is typically
|
| management experience, history of
| |
| | reinvested in the business and called
|
| performance, growth potential, low cost
| |
| | retained earnings, and some of it can be
|
| producer, and etc.Fundamental Analysis
| |
| | paid to its shareholders as a dividend.
|
| ExpressionsFor beginning I describe some
| |
| |
|
