Welcome back! We’re thrilled to present the third installment in our series of blogs delving into the captivating realm of fundamental analysis and financial ratios. If you’ve been following along, you’re already well-versed in the art of assessing a company’s valuation and profitability. Now, it’s time to unveil the next layer of insights as we embark on a journey to gauge the financial strength of companies. In this blog, we’ll equip you with the knowledge and tools needed to dissect a company’s financial health. Just as a physician examines various vital signs to determine the well-being of a patient, we …
Tag: Fundamental Analysis
Understanding Fundamental Analysis & Financial Ratios- II: Profitability
Welcome back to the second instalment of our blog series on fundamental analysis! In our previous article, we delved into the world of valuation multiples and how they serve as invaluable tools for assessing a company’s overall worth. Now, armed with a foundational understanding of these metrics, it’s time to journey deeper into the realm of financial analysis. While valuation multiples provide a glimpse into a company’s market value, they are only a part of the comprehensive fundamental analysis puzzle. To complete the picture, we need to turn our attention to the company’s ability to generate profits, manage costs, and …
Understanding Fundamental Analysis & Financial Ratios- I: Valuation Multiples
There’s an old adage – “If you fail to plan, you plan to fail.” This is true in stock investing and stock trading as well. Investing in stocks entails multi-layered research and analysis, in which fundamental analysis is a crucial part. Fundamental analysis is a valuable tool for evaluating the financial health and performance of a company which involves assessing a company’s financial statements, profit, revenue, expenses, assets, and liabilities to determine its intrinsic value and potential for growth. This analysis can provide insights into the company’s current and future financial health and can help you make informed investing decisions. …