Fundamental Analysis
Fundamental Analysis: The Three Sheets (Part 3/3)
Last but not least, the statement of cash flows. Here again is another link to an example cash flow statement. I would like to make mention that the company that I am using in all these examples is not an endorsement for it. It was completely random that I chose it and I have no [...]
read more »Fundamental Analysis: The Three Sheets (Part 2/3)
The second of the three sheets that we’ll look at is the Income Statement. The income statement is the financial statement used by companies to report their earnings, or income, hence the name. For reference, please click here (link will open in a new window) to see an example of an annual income statement available [...]
read more »Fundamental Analysis: The Three Sheets (Part 1/3)
When beginning to analyze a company based on fundamentals, nearly all the information you need is contained in The Three Sheets. The three sheets are the three major financial statements – the balance sheet, income statement, and statement of cash flows. These are must be reported by every publicly traded company as mandated by the [...]
read more »Fundamental Analysis: Reloaded
So, here we go again. Starting over the Fundamental Analysis series. What is fundamental analysis? Fundamental analysis is the act of analyzing a company as a money-making business. The theory that drives this analysis is that, in the long run, a company’s stock price has to be directly related to its fundamental value as a [...]
read more »Fundamental Analysis: How To (Part 2 – Price to Earnings Ratio)
I’ve probably given you all more than enough time to read the Tweedy Browne article I mentioned in my last post. That being said, maybe some people are too lazy or just want to hear my wonderful re-cap of Price to Earnings – why and how we use it. Why is price to earnings important? [...]
read more »Fundamental Analysis: How To (Part 1 – Price to Book Value)
Fundamental analysis for the individual investor is the application of those valuation measures mentioned in my previous post. It is a way that the individual investor, with minimal knowledge of true valuation metrics, can make educated decisions on a company’s stock’s current value. What is value? Value was defined in the early 1900s by Benjamin [...]
read more »
