Fundamental analysis

Agenda

• Introduction to fundamental analysis.

• Quantitative analysis.

• Income statement metric.

• Qualitative analysis.

Introduction

• Revenue.

• Profit.

• Expenses.

• Intrinsic value.

Quantitative factors

• Revenue.

• Expenses.

• Assets.

• Liabilities.

The income statement

• profits = revenue - expenses

Balance sheet

• Assets.

• Liabilities.

• Equity.

Fundamental analysis tools

• Earnings per share-EPS.

EPS = Net Earnings / Outstanding Shares

• Price to earnings ratio-P/E.

P/E = Stock Price / EPS

Qualitative factors

• Management.

Qualitative factors

• Market share.

Qualitative factors

• Regulation and law.

Qualitative factors

• Business model.

• Customers.

• Competitive advantage.