Fundamental Analysis for Beginners
Learn how to analyze a company’s financials and future growth potential.
Key Financial Metrics
Revenue, Profit, EPS, PE Ratio
Understand a company's sales (revenue), net profit, Earnings Per Share (EPS), and Price-to-Earnings (P/E) ratio to assess profitability and valuation.
Debt, Cash Flow, ROCE, ROE
Analyze debt levels (Debt-to-Equity ratio), cash flow from operations, Return on Capital Employed (ROCE), and Return on Equity (ROE) to evaluate financial health and efficiency.
Real-life Example: Analyzing an Indian Stock
(Illustrative) Walk through key metrics of a well-known Indian company to see how these numbers apply in practice.
How Long-Term Investors Use It
Fundamental analysis helps long-term investors identify fundamentally strong companies with good growth prospects, aiming to invest in businesses rather than just trading stocks.
Long-Term Perspective
Fundamental analysis is about understanding the intrinsic value of a company. It's a cornerstone of value investing and long-term wealth creation.