Friends of Asia Stock Tips |
|
Sponsor |
|
|
|
 |
Fundamentals for AsiaStockTips.com
|
|  Fundamental Analysis attempts to value a stock or company based solely on the company's financial statements - balance sheet, income statement, statement of cash flows and any other relevant disclosures such as leases. It is not concerned with the market in general. |
|
Elements of Fundamental Analysis |
| Sales and Cost of Goods Sold (COGS) - Found on the Income Statement, these figures offer insight into the gross margins of the company. They can then be comapred to thier competitors and the industry as an whole. |
| The Statment of Cash Flows examines where the company is using and receiving money. The 3 sources are Investments, Operations and Financing. |
| Future growth of the company is determined a number of ways through including Discount Dividend Model, Present Value of Growth Opportunities or Cash flow analysis. |
| The companies use of short term and long term debt. These are found on the Balance Sheet and interest payments and amortization are found on the Income Statement. Don't forget leases that are generally held Off Balance Sheet. |
| Assets found on the Balance Sheet to are important. Are they new? Are they being depreciated accurately? Are they being classified wrongly? Or not at all? |
|
|
|
|
Tell A Friend
