Fundamental Analysis Stencil...

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

 

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.

 

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

 

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

 

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.

 

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 ....

 

@ 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

 

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

 

@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!

 

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

 

is there any kind of such software online?

 

No idea Vikash ji

 

https://www.edelweiss.in/tools/whatif.aspx

 

Yes Very Interesting Link Tanuj ji

 

Edelweiss tool is superb. Thanks.