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Stock analysis fundamental factors affect

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FUNDAMENTAL ANALYSIS
Fundamental analysis is a method used to determine the value of a stock by analyzing the
financial data essential to the company with the goal of projecting future price movements.
Investors examine the company’s financials and operations by looking at sales, earnings,
dividends, growth potential, assets, debt, management, products and competition, in order to
verify if a stock should be bought or sold. An important characteristic of fundamental analysis is
that it focuses exclusively on those variables that are directly related to the company. The general
market and the behavioral variables in its methodology are in secondary focus.
Earnings per Share (EPS)
EPS measures the profit available to the equity Shareholders per share, that is, the amount that
they can get on every share Held. It is calculated by dividing the profits available to the
shareholders by Number of outstanding shares. The profits available to the ordinary Shareholders
are arrived at by net profits after taxes and preference dividend.
EARNINGS PER SHARE = EARNINGS
NO OF SHARES IN ISSUE

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FUNDAMENTAL ANALYSIS Fundamental analysis is a method used to determine the value of a stock by analyzing the financial data essential to the company with the goal of projecting future price movements. Investors examine the company’s financials and operations by looking at sales, earnings, dividends, growth potential, assets, debt, management, products and competition, in order to verify if a stock should be bought or sold. An important characteristic of fundamental analysis is that it focuses exclusively on those variables that are directly related to the company. The general market and ...
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