Fundamental Analysis
What we do when we say that we are doing fundamental analysis of stocks We actually study the underlying business of that stock. To understand the need of fundamental analysis of business, let’s take a small example…Read More
Profit and loss account is also known as income statement. It a document which is prepared by the company to report its income, expense, and profit happened in last 12 months. Profit and loss account talks about how much income the company has generated in last FY…..Read more
Balance sheet gives clarity about how the company has build wealth over the past years. It talks about how the company is generating funds to run its business. It also makes clear, where the company is using those funds….Read more
Cash flow statement gives us the clarity about the company that whether the company has enough resources to keep it afloat in times of crisis. What best can keep a company going? Cash. Hence, a cash rich company is always valued highly by the analysts…..Read more
Financial ratio analysis is so popular because it make analyzing of stocks comparatively easier. People can use ratios to compare between two companies and draw conclusions. If you’ve heard about terms like P/E ratio, P/B ratio etc then you know ratios….Read more
Value investing is an investment strategy to buy quality stocks at “undervalued price”. What is undervalued price? A market price below its intrinsic value is undervalued. Some famous value investors are Warren Buffett, Peter Lynch, and Joel Greenblatt. The founder of value investing is Benjamin Graham and David Dodd…..Read more
NCAVPS is easiest and most reliable method to estimate intrinsic value of stocks. Yes, for me it is even more reliable than DCF method. We would like to buy stocks which falls in between this range, and this is where NCAVPS comes in. It helps us to calculate the intrinsic value’s lower limit…..Read more
Discounted cash flow (DCF) is of the more accurate financial models used to estimate intrinsic value of stocks. This method of stock’s price valuation is used by experts like Warren Buffett etc. What makes DCF more accurate?….Read more