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