Here are few points which should be consider while Fundamentally Analyzing Any Company
1.History of Sales, Earnings & Cash Flow
2.Durable Competitive Advantage
3.Future Growth Drivers
4.Conservative Debt (Long Rerm Debt < 3yrs Net Profit)
5.Debt Equity Ratio & Current Ratio
6.Return on Equity must be Above Average
7.Low CAPEX required to maintain current operations
8.Promoters holding /Is Promotor buying the stock ( promoter buy back Gives confidence)
9. Price is Under Valued ( Its intrinsic value)
10.Stock Price Movement consolidating/uptrend or Downtrend
11.Stock Price is growing in past years along with EPS growth or Not
12.Additional Future caps Checklist
13.Consolidated PE, PB Ratio
14.Cash Flow should be Positive, Net Profit % should be greater than 8%
15.Paying Dividends, Tax
16.EPS Growth Rate
17.Jump in Trailing Result EPS
18.Jump in Quarterly Result EPS
19.Expected Gain in 5 Years
20.Price Movement Graph, 52 Week High & Low
22.Power of Brand
23.Corporate Governance & Reputation of Leaders
24.Any Fraud reported ?
26.Companies product Relation with Crude Oil prices & Dollar.
27. ECONOMIC SCENERIO & GLOBAL FACTORS.
The above are few points to consider while selecting any stock.
Disc – All views expressed are personal & For Educational and study purpose only.Consult your Financial Advisor before Investing.