Fundamental Analysis of Pharmaceutical Stocks
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Fundamental Analysis
Fundamental analysis is a technique that attempts to determine a security’s value by focusing on underlying factors that affect a company 's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements.
Fundamental analysis serves to answer questions, such as:
Is the company’s revenue growing? * Is it actually making a profit? * Is it in a strong-enough position to beat out its competitors in the future? * Is it able to repay its debts?
Investors that analyze stocks utilizing fundamental analysis prefer to look at basic information about a company in an effort to figure out what they think is the true or fair value of a company’s stock. Fundamental Analysts look at a lot of news and perform research into data such as growth of the company’s sales and profits.
SCOPE OF THE STUDY
The research carried out aims at studying the various scripts (companies) their Balance Sheet, P&L A/c, Annual A/Cs, etc. in an in-depth manner by means of ratio analysis to find out sustainability and profitability of a specific company. To study through various other tools like current news about the company, trend analysis, common size statement etc. in order to get a complete idea of fundamental analysis of pharmaceutical sector in particular.
The study pertains to the financial years of 2007 to 2009.
PROBLEM DEFINITION The study has been conducted to conclude about the fundamental position of the selected companies according to the findings of ratio analysis, trend analysis and common size statement analysis of securities, so that investors can easily get an idea about the fundamental analysis of pharmaceutical companies.
OBJECTIVE OF Study The main objective of project is to do
Fundamental Analysis
Fundamental analysis is a technique that attempts to determine a security’s value by focusing on underlying factors that affect a company 's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements.
Fundamental analysis serves to answer questions, such as:
Is the company’s revenue growing? * Is it actually making a profit? * Is it in a strong-enough position to beat out its competitors in the future? * Is it able to repay its debts?
Investors that analyze stocks utilizing fundamental analysis prefer to look at basic information about a company in an effort to figure out what they think is the true or fair value of a company’s stock. Fundamental Analysts look at a lot of news and perform research into data such as growth of the company’s sales and profits.
SCOPE OF THE STUDY
The research carried out aims at studying the various scripts (companies) their Balance Sheet, P&L A/c, Annual A/Cs, etc. in an in-depth manner by means of ratio analysis to find out sustainability and profitability of a specific company. To study through various other tools like current news about the company, trend analysis, common size statement etc. in order to get a complete idea of fundamental analysis of pharmaceutical sector in particular.
The study pertains to the financial years of 2007 to 2009.
PROBLEM DEFINITION The study has been conducted to conclude about the fundamental position of the selected companies according to the findings of ratio analysis, trend analysis and common size statement analysis of securities, so that investors can easily get an idea about the fundamental analysis of pharmaceutical companies.
OBJECTIVE OF Study The main objective of project is to do