Fundamental Analysis Submitted To: Rutvi sarang Submitted By: Kushal Bhagat

Fundamental analysis The intrinsic value of an equity share depends on a multitude of factors. The earning of the company, the growth rate and the risk exposure of the company have a direct bearing on the price of the share. fundamental analysis consist of the following analysis.  Economic analysis  Industry analysis  Company analysis

Economic analysis The level of economic activity has an impact on investment in many ways. if the economy grows rapidly, the industry can also be expected to show rapid growth. when the level of economic activity is low, stock price are low, and the vice versa. the analysis of macro economic environments is essential to understand the behavior of the stock prices.

The economic analysis factors Gross domestic product (GDP) Saving and investment Inflation Interest rate Budget The tax structure The balance of payment The monsoon and agriculture Infrastructure facilities Demographic factors Economic forecasting Economic indicators Diffusion index

Industry analysis An industry is a groups of firms that have similar technological structure of production and produce similar products. The industries can be classified on the business cycle. they are classified into growth,cyclical,defensive and cyclical growth industry.

Classification of industry Growth industry Cyclical industry Defensive industry Cyclical growth industry

Industry life cycle Pioneering stage Rapid growth stage Maturity stage stabilization stage Decline stage

Company analysis In the company analysis the investor assimilates the several bits of information related to the company and evaluates the present and future value of the stock. The risk and return associated with the purchase of the stock is analyzed to take better investment decisions.

Factors that affect present and future values  The competitive edge of the company  Earning of the company  Capital structure  Management  Operating efficiency  Financial performance

Financial analysis The best source of financial information about a company is its own financial statements. this is primary source of information for evaluating the investment prospects in the particular company's stock. The balance sheet Profit and loss account

Analysis of financial statements Comparative financial statement Trend analysis Common size statement Fund flow analysis Cash flow analysis Ration analysis