Long Term Investment (Fundamental Analysis)
This article and video contains Fundamental Analysis, which will help you to invest your money in stock market.
By the help of Fundamental Analysis, you able to get maximum information about the company.
NOTE: – Fundamental Analysis will tell us, what stock needs to buy/sell?
Fundamental Analysis contains various factos Like: –
- Market Cap
- Current Price
- Net Profit
- EPS (Earning Per Share), etc.
Market Cap: –
It will tell us about the strength of a company. How will you calculate market cap of a company. The formula is Market Cap = Total Number Of shares * current share price. Based on the market cap range, companies are 3 types, Like Large Cap, Mid Cap and small cap.
If Market Cap is less than 2000 Cr.
If Market Cap is less than 10000 Cr.and greater than 2000 Cr.
If Market Cap is greater than 10000 Cr.
Net Profit: –
It decided based on company results. Basically we will look into companies quarterly and yearly result. We need to give more importance to yearly result. If Net Profit of a company is increasing year by year consistently, then the company is growing.
EPS (Earning Per Share): –
It is a very important topic. If EPS is increasing year by year consistently, it’s a great opportunity to invest this share. EPS = (Net Income – Dividends)/Avg outstanding shares.