Security Analysis
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
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TOPIC : Study of Fundamental Analysis
Of Aditya Birla Nuvo Limited
[pic]
Submitted by: Kishore B L
NMIT
Bangalore
Submitted to: Mr. Vinay H V
Lecturer
NMIT
Bangalore
Date of
Submission: 06-11-2012
A STUDY ON FUNDAMENTAL ANALYSIS OF ADITYA BIRLA NUVO LTD
INTRODUCTION TO FUNDAMENTAL ANALYSIS:
Definition of 'Fundamental Analysis:
A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management).
Investopedia explains 'Fundamental Analysis:
Fundamental analysis is about using real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security.
Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. There are several possible objectives:
▪ to conduct a company stock valuation and predict its probable price evolution, ▪ to make a projection on its business performance, ▪ to evaluate its management and make internal business decisions, ▪ to calculate its credit risk.
Two analytical models
When the objective of the analysis is to determine what stock to buy and at what price, there are two basic methodologies
1. Fundamental analysis maintains that markets may misprice a security in the short run but that the "correct" price will eventually be reached. Profits can be made by purchasing the mispriced security and then waiting for the market to
| |
TOPIC : Study of Fundamental Analysis
Of Aditya Birla Nuvo Limited
[pic]
Submitted by: Kishore B L
NMIT
Bangalore
Submitted to: Mr. Vinay H V
Lecturer
NMIT
Bangalore
Date of
Submission: 06-11-2012
A STUDY ON FUNDAMENTAL ANALYSIS OF ADITYA BIRLA NUVO LTD
INTRODUCTION TO FUNDAMENTAL ANALYSIS:
Definition of 'Fundamental Analysis:
A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management).
Investopedia explains 'Fundamental Analysis:
Fundamental analysis is about using real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security.
Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. There are several possible objectives:
▪ to conduct a company stock valuation and predict its probable price evolution, ▪ to make a projection on its business performance, ▪ to evaluate its management and make internal business decisions, ▪ to calculate its credit risk.
Two analytical models
When the objective of the analysis is to determine what stock to buy and at what price, there are two basic methodologies
1. Fundamental analysis maintains that markets may misprice a security in the short run but that the "correct" price will eventually be reached. Profits can be made by purchasing the mispriced security and then waiting for the market to