As a stock investment analysis method, fundamental analysis is a method used to study a company's operating conditions during the analysis period. It focuses on the company's financial data, profitability, market share, and macroeconomic factors, etc., and provides Investors provide a way to gain a deeper understanding of a company's value. Below, this article will explore the basic knowledge of fundamental analysis from multiple perspectives.
1. What is fundamental analysis?
Fundamental analysis is an analysis of the company's finances and operations, including the company's revenue, costs, liabilities, assets, and performance in the past few years, among which the most important are the company's revenue, profits, and cash flow. By analyzing this data, investors can evaluate a company's fundamental value and determine an investment strategy.
2. What are the core elements of fundamental analysis?
1. Revenue and profitability: Analyze the company's revenue sources and its changing trends, and profitability is the basic consideration in stock investment. By analyzing the company's profitability, such as revenue and net profit growth rate, earnings per share, and gross profit margin , net profit margin, etc., to understand the company's profitability and potential problems in the future.
2. Market share: Market share indicates the popularity of a company's products or services in the market. This factor is an issue that investors with a higher perspective pay attention to, because market share can directly affect the company's revenue and profits. At the same time, it is also a way to analyze the company's future development potential. Investors can understand a company's relationship with its competitors through market share, sales growth, etc.
3. Assets and Liabilities Sheet: By analyzing the company's assets and liabilities, investors can understand the assets and liabilities of the target company and analyze whether the company's debt repayment ability is sufficient, and this fundamental data can reveal the company's long-term and short-term financial health.
4. Cash Flow: Cash flow is a company’s cash flow and is also important to investors. Investors can judge the company's operating status by analyzing the company's cash flow statement to determine whether the company's profitability level is consistent with its cash flow situation.
3. Perspectives of fundamental analysis
1. Financial analysis perspective: Analyze a company from the financial statements and check the company's revenue, income, net cash flow, debt status and other data.
2. Macroeconomic analysis perspective: predict corporate operating performance based on macroeconomic factors such as inflation rate, interest rate changes, etc.
3. Industry analysis perspective: Analyze the industry in which the target company is located, analyze its position and competition with similar companies in the industry, and construct the company's overall equity value expectations.
4. Fundamental Analysis Techniques
1. Use financial tools: income statement, balance sheet, cash flow statement and other financial indicators to quantify the company's operating status.
2. Research industry trends: Be proficient in basic industry knowledge, grasp the production, technical and other characteristics of related industries, and understand the macroeconomic situation.
3. Performance analysis: Track a company's performance quarter by quarter and analyze the company's growth, health rate and other aspects.