Hey investors, have a great Saturday.
I would like to break down here what I think fundamental analysis should look like and what should not be missing.
1, financial statements ( income statement, balance sheet, cash flow statement)
For me, one of the most important things, as I get to know how the company handles money and how the company is doing over time.
2, Management
Also definitely an important thing to find out what the management of the company is like. Who they are and what steps they take and how they approach different things. It is important to find out information about the people that are the highest in the company.
3, Competition
It is a good idea to find out what the competition is in the sector and if there is any significant competition to the company you have chosen. Then it is a good idea to look at other companies and do a fundamental analysis on them as well to see if the company you have chosen is the right one or if there is a better one.
4, Acquisition
It is a good idea to look at what acquisitions have been made and how the company approached it. Alternatively, if there were any problems with the acquisitions and whether the acquisition paid off.
5, The intrinsic value of the share
In the last piece of advice, once you have accepted that you have chosen the right company, it is a good idea to calculate the intrinsic value of the share so that you don't overpay for it.
You can find plenty of guides and tables on the internet on how to calculate such intrinsic value. Most of the time the procedure is the same and it is calculated through the DCF model.
This was just some of my experience and my approach to fundamental analysis. If I have forgotten something important, I will certainly be glad for a reminder.
And how do you perform fundamental analysis and what do you think should not be missing in it?
Super summary along with the points others have written here. :)
I'm also quite interested in how many new shares they issue, but that's part of those aforementioned reports. I also look at how regulation affects that business and how much the state apparatus interferes with that business. How capital intensive the biz is, how economic cycles affect it, etc. there's a lot of that.
Great post and like @neostonks I would add an analysis of the whole industry.
Great, for my part I would add to evaluate not only the competition but also the whole industry - how it is doing, whether there is any cyclicality and the future prospects of the industry and the company. And possibly a risk analysis.