Importance of Fundamental Analysis as Part of Stock Valuation

Are you a regular investor in stock markets? Are you an investor who wants to get started investing but doesn’t know how to find the best stocks?

The key to stock market investing success is selling or buying the stock at the correct price. If done correctly, a stock can be profitable but could also become a loss-making investment. Stock valuations should be done by an expert or you can do it yourself.

Fundamental analysis of stocks can be a crucial stock valuation technique. It can help you determine the likely direction that a stock’s price will move in the future. Fundamental stock evaluators consider every stock to be moving towards its intrinsic or real value. If the intrinsic value of a stock falls below its current market price, it means that you can purchase the stock at a higher price. If the stock’s real value is higher than its current market price, it indicates a sell order.

How can one find out the intrinsic and real value of a company stock? This is where fundamental analysis of a stock and the company comes in handy. This includes an analysis of the current and future economic health, as well as extensive research on the company’s financial reports and management performance, growth potential and annual and quarterly performance history compared to peers in the same industry.

You may be wondering how you can have so much time for such thorough analysis. JM Financial has a team professional equity research analysts. JM Financial can offer investment management services including portfolio management and equity investment.

Are you a stock investor? Do you believe in fundamental analysis?

I’m a finance MBA and manage the company’s finances. Long-term, my goal is to start my own business. To that end, I spend a lot time studying real-life cases related to ESOP, IPO, real estate NBFC and other funding options. Writing is my passion and keeps me connected to the rest of the world.