Fundamental Analysis:
The underlying theme in fundamental analysis is that the true
value of the firm can be related to its financial characteristics -- its growth prospects, risk
profile and cashflows. Any deviation from this true value is a sign that a stock is under or
overvalued. It is a long term investment strategy, and the assumptions underlying it are:
(a) the relationship between value and the underlying financial factors can be measured.
(b) the relationship is stable over time.
(c) deviations from the relationship are corrected in a reasonable time period.
Valuation is the central focus in fundamental analysis. Some analysts use
discounted cashflow models to value firms, while others use multiples such as the priceearnings
and price-book value ratios. Since investors using this approach hold a large
number of 'undervalued' stocks in their portfolios, their hope is that, on average, these
portfolios will do better than the market.

21st August 2006 From India , Nasik

Hr Professional
Equity Advisor Trainee
+1 Other

i want to learn Fundamental Analysis tell me indian author books or material to learn it start from beginning. please do the needfull regards harshad
29th December 2007 From India , Mumbai
There is one site My Multibagger Stocks his book is The Winning Theory in stock market author name : Mahesh Chander Kaushik. His android application sharegenius.
There is one similar site which I do not remember Pl help me to get same.
17th December 2016 From India, Mumbai
Please login to participate in this discussion or start your own. Create Account

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network

All rights reserved @ 2017 Cite.Community™