Fundamental Analysis Stencil...

Discussion in 'School Of Stock Market' started by yembee, Nov 17, 2015.

  1. yembee

    yembee Active Member

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    Hi Senior Experienced members....

    I have been a student of stock market for the last ten years and have developed a stencil for Fundamental Analysis. I request you to go through it and guide me ...

    1.I have collected 10 years Annual results and corresponding stock price
    2.Calculate Average PE based on last three/four years
    3.Extrapolate the Sales growth to next two more years and apply last three years average percentage of profit.
    4. Calculate Expected EPS and multiply with Average PE will give the Stocks fair price and one year Target.

    Am I doing right ... Advise please capture2.jpg
     
    kiran and Srouta Mukherjee like this.
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    This is the way brokerages do it. It is scientific method calculation by extrapolating present to future. It is good starting point after that one can apply qualitative factors such as competition extent, management quality etc.
     
  3. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    What is result of analysis on Atul auto. Is it buy or hold?
     
  4. yembee

    yembee Active Member

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    Srouta ji... FA says good company we can Buy. TA say it is the best time buy...
     
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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Thanks it is comforting because I have Atul Auto for long time but it is not moving at all. Management is good, product is good.
     
  6. yembee

    yembee Active Member

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    Good companies with great management surely will perfrom better. But if we give equal importance to TA it is easy to lock profit and ease our position when it looks Technically week. If you observe the above analysis in 2014 the momentum of growth has dipped that why the reaction ....
     
  7. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    @ yembee

    congratulations , very nice work , you are doing great Research work ...
    please give details of these words
    BLG , P% , TOP ,TLG , RMC

    ALL THE BEST
     
  8. yembee

    yembee Active Member

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    Rama Murthy Sir Thank you very much
    BLG : Bottomline growth
    p% : Percebtage Profit Margin
    TOP : Topline / Sales
    TLG : Topline Growth
    RMC : Return on Market Capital

    ThnakQ again
     
  9. BombayBoy

    BombayBoy Well-Known Member

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    @yembee

    You seem to be pretty disciplined with methods and approach to investing, congratulations!

    Personally, I'm like Joker from The Dark Knight - "do I really look like a guy with a plan?"
    Learning, the markets keep on teaching every time, just when i book profits from a good trade and get confident, the next trade is a lesson - a loss.

    If you'd like, Prof Aswath Damodaran has excellent videos on Investment Philosophy on YouTube

    Not an expert or a senior, just another one from the herd ;)

    Good Luck mate!
     
  10. yembee

    yembee Active Member

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    Hi BB mate

    Delighted to read your reply....I have seen many of Prof Aswarths videos. I think you clearly know ur strength and weakness ...
    All the very best
     
  11. vikash kumar

    vikash kumar New Member

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    is there any kind of such software online?
     
  12. yembee

    yembee Active Member

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    No idea Vikash ji
     
  13. TANUJ

    TANUJ New Member

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  14. yembee

    yembee Active Member

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    Yes Very Interesting Link Tanuj ji
     
  15. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Edelweiss tool is superb. Thanks.
     
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