ALL >> Investing---Finance >> View Article
Ways2capital: Fundamental Analysis Of Stocks Market.
Total Articles: 8
Fundamental analysis means that if you want to stocks in stock market, Before buying, decide which company to stock? And if I take this company's stock then why should I stock it?
You invest in the company in a way by taking shares and you will definitely want to get the maximum profit after the company gets the share, then the price of your share will also increase and you will also get good profit dividend income.
If you are investing in a company here to earn profits, then we would definitely like to know what the company is in the details, how its balance is, what is its future, how much is its debt, how much reserve is with the company, what is the competitor Hey, how many profits of the last few years, how much the company is paying dividends, the company cash flow, how many orders the company has, how much is the company's management, and much more we would like to know.
So, in any detail about any company, we all know this as fundamental analysis.
What is the important component of fundamental analysis? : If you are connected to SHARE MARKET, then you must hear these words from many TVs, such as EPS, PE RATIO, BOOK VALUE, and so on, let's know what all this is in the details and we are fundamental How to work when doing analysis for stocks
1. Earnings per share: The profitability of the company is revealed by earning per share, because EPS means that the part of PROFIT is ALLOCATE OUTSTANDING shares.
You must know that the earning means the profit, OR per share means a share,
Earnings per share means a share per profit, now if year by year earnings per share is increased, then the company's profitability is good because the company's EPS year by year is increasing.
EARNING PER SHARE = PROFIT / OUTSTANDING SHARES
Right now, what are outstanding shares, outstanding shares means that the shares are issued or those who have an investor, that means all those shares are available in the market which are available for trade.
For the fundamental analysis of stocks in Indian stock market, earning per share, if it is rising over the past few years, then it can move further and if we take this stock, we can get profits.
2. Price to Equity Ratio (PE RATIO): In FUNDAMENTAL ANALYSIS, the PE ratio is used to SELECT to STOCK,
PE ratio is used to compare the price of share, how cheap or how expensive it is,
PE RATIO is related to earning per share, as CURRENT MARKET divides PRICE by earning per share to remove the PE RATIO,’
PE RATIO = current market price / earning per share
If PE RATIO high or you are thinking of taking a share, then you should take into consideration all other terms of fundamental analysis of stocks in Indian stock market.
3. Price to book value: Book value shows the balance sheet, book value means simple account of the company's assets - liability = book value,
Company's asset = land, building, plant, machinery etc.
Company liability = all type of loans
For removing the book value, for the fundamental analysis you get the figure of equity share capital or retained earnings in the balance sheet, the total of both of which will come from your book value,
equity share capital + retained earnings = book value
Now if you divide this total with the number of equity share, then you will get a per share of book value.
equity share capital + retained earnings = book value / number of equity shares = Book value per share
If the share price is less than its book value then that share becomes attractive and you can think of buying it.
But it has been seen that the company that is fundamentally strong, is always more than its share price book price, or if it is near, if the share price is less than the book value of the company, then you should also consider other terms of fundamental analysis Check before taking stock.
Or if you want to take advise like a stock market tips in commodity, future and option an individual can also receive a recommendation in currency market. According to his individual risk appetite because, in currency derivative an individual can trade with the minimum investment as compare to the equity, commodity and its derivative.
Signature – Mahendra Rajput [Senior Digital Marketing Executive] | Ways2Capital provides mcx tips , Intraday Stock Tips, NCDEX Tips, Forex tips. We provide full support also during market hours. | To get more details- visit us on http://www.ways2capital.com | Contact us on 0731-6626191.
Investing / Finance Articles1. Excellent Reasons To Get A Personal Loan
2. Why For Traders Forex Education Is Important?
Author: Linda Hall
3. What Are Credit Repair Services And How They Help?
Author: Martin King
4. Impact Of Indian Festival On The Stock Market
Author: Akash Rathore
5. Moni Finex
Author: Henry Wil
6. What Is Systematic Investment Plan (sip)?
Author: Shashank Pawar
7. What Is The Importance Of Diversification?
Author: Why do we need Diversification in Capital Market?
8. How To Track Mutual Fund Performance?
Author: Shashank Pawar
9. Private Sector Economists Analysts Again Bring Down Singapore 2019 Development Forecast
Author: Epic Research Singapore
10. Explanation On The Types Of The Stock
Author: Epic Research
11. How To Save Money From Day Deposit , Be Rich, Build Wealth And 100% Change Life
12. What Is Equity Linked Savings Scheme Fund? & Benefit Of The Elss Fund
Author: Shashank Pawar
13. Sources Of Small Business Loans
Author: Secured Lending
14. How To Repair Credit After Bankruptcy In Easy Steps
Author: Darren Burgess
15. Points To Tick Off While Taking A Personal Loan