Preview

Fundamental Analysis

Powerful Essays
Open Document
Open Document
2696 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fundamental Analysis
Objective of the study
Due to high volatility in the stock markets it is considered as a very rigorous job to predict the future move to stock price. Secondary market participants often use two forecasting techniques, Fundamental & Technical analysis. The basic objective of conducting this report is to apply our theoretical knowledge in practical situation. The objective behind conducting this study is as follows: • Quantatives analyze of ten companies. • Qualitative analyze

Fundamental Analysis

Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value its stock.
Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock.
This article focuses on the key tools of fundamental analysis and what they tell you. Even if you don’t plan to do in-depth fundamental analysis yourself, it will help you follow stocks more closely if you understand the key ratios and terms.
As per our assignment tasks I am trying to analyze five stocks of following companies: ❖ AB Bank Ltd. ❖ Grameen Phone Ltd. ❖ Beximco Pharma Ltd. ❖ Aftab Automobiles Ltd. ❖ Titas Gas transmission & Distribution Ltd. ❖ Eastern Bank Limited ❖ Premier Leasing & Finance Limited ❖ Summit power Limited ❖ H.R Textile Mills Limited ❖ BRAC Bank

Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value its stock.
Following are the most popular tools of fundamental analysis. 1. Sector Business Segment 2. Category 3. Market Capital 4. Net Profit After Tax 5. Earnings per Share – EPS

You May Also Find These Documents Helpful

  • Good Essays

    JET Task 1

    • 3064 Words
    • 13 Pages

    Financial analysis is the process of evaluating a business’s liquidity, viability, stability, and profitability. It is typically used during audits, to determine if a business is suitable to be invested in, comparison to other companies, and to analyze overall financial status. The typical items reviewed during financial analysis are income statements, balance sheet, and cash flow statements. Once the documents have been reviewed a report is formed and presented to management for decision making purposes.…

    • 3064 Words
    • 13 Pages
    Good Essays
  • Better Essays

    Xacc 280 Final

    • 1225 Words
    • 5 Pages

    Liquidity, solvency, and profitability are the three characteristics that will be used to see a company’s success. A simple financial statement will not demonstrate the company’s power because it is a general idea of the company’s position and does not display business developments. The company’s business developments are vital for potential investors because they determine vertical and horizontal analysis. These characteristics are also used to define the ratio analysis. Ratio analysis is dividing two numbers to get a number of percentages that can be used to compare companies in the same industry. Examining the entire company’s financial trends for a set period of time, an investor will see a factual description of the company’s financial condition. This is the financial analysis an investor desires to review prior to spending money.…

    • 1225 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    There are three ways to analyze financial statements there is the vertical analysis, which uses the base percentage to express the assets or liabilities and stockholders’ equity. Horizontal analysis or the trend analysis is how someone can evaluate the financial statement over a period. With this method, one can determine an increase or decrease in assets liabilities or stockholders equity. This can be done in percentage or totals Horizontal analysis is used primarily with an intercompany comparison. Ratio analysis is when one uses three comparisons to look at the financial statements it would look at industry average intracompany and intercompany. Ratio expresses the mathematical relationship in a percentage either a rate or a proportions. It depends on if you are a Short-term creditor or a stockholder which method will be most beneficial for the necessary information to make a sound decision. This information can be overwhelming so careful study and practice is important when analyzing finical statements.…

    • 292 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cango Financial

    • 1115 Words
    • 5 Pages

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    bloomberg cheatsheet

    • 13256 Words
    • 68 Pages

    10 Full Search 11 Browsing Menus 12 Performing Analysis 12 Navigating Functions 13 Stock/Company Screening 14 Analyzing a Company 15 Analyzing an Index, Bond or Currency 16 Exporting Data 16 The Bloomberg Excel Add-In 19 Drag & Drop 19 Printing and Other Export Options 20 Getting Help and Learning More CONTENTS>>>>>>>>>> 21 Appendix 21 Equity 21 Fundamental Analysis 22 Analytics 23 M&A Analysis 23 Fixed Income 25 Swaps 26 Money Markets 27 Structured Finance Analytics  28 Price Discovery  29 Analytics 29 Descriptive 29 Relative Value 29…

    • 13256 Words
    • 68 Pages
    Powerful Essays
  • Powerful Essays

    Shortly after the stock market crash in 1929, as the first batch of financial experts in the Great Wall, Benjamin Graham and David Dodd firstly mentioned the concept in a book called security analysis: Based on public information that intelligent investors are able to analyse securities and determine whether the current price of stocks and bonds is over or below their intrinsic value. The Critical thinking and strong logic make this theory become the foundation of nearly all investments theories in Wall Street. Warren Buffett, John Neff, Peter Lynch and other famous investors become the best practitioners in fundamental analysis. This essay will firstly introduce the related theories of fundamental analysis. Secondly, the essay will explain free cash flow model to equity valuation and the qualitative and quantitative factors of fundamental analysis. Thirdly, choosing a…

    • 2756 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    A primary “goal for management is to maximize the current value of the firm’s stock” (Parrino, Kidwell, Bates, 2012, pg. 12). As a result, understanding the true value of stock is beneficial. Stock valuation is important to identify which stocks are more desirable and will maximize wealth. Since stock has an effect on business and one’s own portfolio, valuing stock is critical. Several methods to value stock exist however; there is no best method for this valuation. Each stock contains its own characteristics to analyze based on the company issuing it. One must analyze the business and stock to find the ideal stock valuation method. By comparing the market price of stock to the realized value in the stock valuation, one can determine whether a certain stock is the optimal choice.…

    • 644 Words
    • 2 Pages
    Good Essays
  • Good Essays

    When I first started the Stocktrak project, I was very unsure on how to select the companies to invest in. I viewed the companies’ stocks and basically chose the entities with an increase in their stock price. After learning more about financial analysis, I learned there are many ways to analyze a company’s current and future earnings. The three most important aspects of financial statement analysis which assisted me in my investment decisions include profitability ratios, horizontal analysis, and analyst estimates and predictions. I did research on many companies I was interested in…

    • 898 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The three of financial statement analysis are horizontal analysis, vertical analysis, and ratio analysis. The function of all three analyses is to evaluate the significance of financial statements data. Horizontal analysis function is to evaluate and compare data given by the financial statement for at least two years with in its own company. Vertical analysis expresses the amounts of the financial statements as a percentage from the amounts given on the financial statements. Vertical analysis also makes it so that companies can compare how they are doing with competing companies. Ratio analysis is used to evaluate liquidity, profitability, and solvency.…

    • 769 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Incremental Analysis

    • 515 Words
    • 2 Pages

    Comprehensive analysis is the financial term used for evaluating every financial detail of the entire operation in a company. The purpose of conducting comprehensive analysis is to determine a company’s present financial position as well as its expected financial standing in the future. In conducting comprehensive analysis, both current and historical fiscal reports must be collected to analyze the status of the company’s investments. These reports are also needed to calculate the financial ratios of different companies. Determining the financial ratios…

    • 515 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Ratio Analysis

    • 3271 Words
    • 14 Pages

    tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.…

    • 3271 Words
    • 14 Pages
    Better Essays
  • Good Essays

    Stock Market Project

    • 920 Words
    • 3 Pages

    There are an overwhelming amount of stocks available for purchase on the stock market. The first thing to do is come up with a list of investing objectives. Some primary objectives should include earnings growth, recent earnings surprises, price/earnings ratios, dividends, the market cap or size, the industry and relative strengths or weaknesses. Most of the information needed for proper research can be found on any company’s income statement, balance sheet and cash flows statements. Most of these statements can be found on a company’s annual reports or its financial statements; which can be gathered directly from the company’s website or sites such as Hoovers.com, Forbes.com and many others. Another way to determine which stocks to choose is to look at the AGR scores of a stock. AGR scores are based on statistical analysis of accounting and governance risk factors. Lower scores indicate a corporate integrity risk.…

    • 920 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    next plc ratio analysis

    • 1780 Words
    • 8 Pages

    2) When we are going to choose a share we need to look the business and products of a company and also looks at its accounts, Earning per share and prospective dividends. Other factors such as inflation rate, currency level interest rate and consumer demand. Additionally the competitors are examined along with the efficiency of management. This analysis is called as a fundamental analysis this concentrates on the true value of the company. The company accounts reflect the true value of information better than economic information.…

    • 1780 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Case Study Phoenix vs Petron

    • 5620 Words
    • 86 Pages

    The techniques used in the analysis include: common-sized financial statements, key financial ratios, trend analysis, structural analysis and industry comparison. The key financial ratios utilize are liquidity and solvency, profitability, leverage, and activity. Statement of cash flow is evaluated and integrated with the ratio analysis results.…

    • 5620 Words
    • 86 Pages
    Powerful Essays
  • Satisfactory Essays

    Accounting Theory

    • 416 Words
    • 2 Pages

    The fundamental value of a share is the value it would have in an efficient market if there is no inside information. That is, all information about the share is publicly available.…

    • 416 Words
    • 2 Pages
    Satisfactory Essays