Fundamental Analysis, 3 L-WHA
Does a specific stock deserve a place in your portfolio? Due diligence starts with fundamental analysis: Earnings and earnings ratios, financial statements, growth and growth potential, and the competitive environment.
Fundamental Analysis Encyclopedia Articles By Title
3 liquidity ratios: Assessing short-term financial viability
Measuring a companyās liquidity ratio is like checking a carās fuel or electricity gauge. Even a zippy Lamborghini......
Analyzing an income statement: A key to fundamental stock analysis
If you have excess cash on hand, you may be looking to invest it in the stock market. You might have heard the......
Are markets efficient? How Eugene Fama kicked off a controversy
One of the most controversial topics in finance is the efficient-market hypothesis, introduced by economist Eugene......
Basic stock analysis for beginners
When investors hear the term āstock analysis,ā they might picture an MBA at an investment bank, working 100-hour......
Boost portfolio resiliency by adding sustainable investing criteria
All investing includes risk, and smart investors manage their risks wisely. One growing approach is to include......
Contrarian investing: Buying shares of the unloved, unwanted, and underpriced
Imagine passengers on a small boat rushing to one side. What begins as a gentle lean soon becomes a dangerous tilt.......
Decoding the Sharpe ratio: A measure of risk vs. reward
William F. Sharpeās main contribution to finance was the capital asset pricing model (CAPM), which says that investment......
EBIT or EBITDA: Different ways of looking at net income
When it comes to a companyās financial statements, net income, earnings per share (EPS), and revenue are the numbers......
Fundamental analysis: How it can help you determine a stockās value
Fundamental analysis is an investing method that helps identify potential opportunities by assessing how financial......
Goodwill accounting: A complicated part of mergers and acquisitions
When companies announce acquisitions, the executives throw around a number called goodwill, which is the difference......
Gross, operating, and net profit margins: Why they matter (and how to use them)
The first rule of business is that it canāt succeed unless it can bring in enough revenue to cover all of its costs.......
Harry Markowitz and modern portfolio theory
In the 1950s, a new crop of statisticians at Bell Laboratories, the RAND Corporation, and several universities......
How companies use forward guidance to shape investor expectations
We would all love to take a peek into the future, especially when it comes to our investments. Although thereās......
How the capital asset pricing model (CAPM) changed investing
For decades, investors looked at each investment opportunity as an independent entity. They analyzed companies......
How you can use SWOT analysis when choosing investments
When embarking on a new business initiativeāa merger, joint venture, or new product line, for exampleāmany companies......
Insider transaction reports: What stock deals can tell you about a company
Wish you were a fly on the wall when executives make decisions about their companyās future? You can be, in a way.......
Investing in speculative start-up stocks? 14 alternative fundamentals to follow
You just bought shares in a hot new company whose stock price, you believe, has the potential to go sky-high. As......
Momentum investing: Riding the wave of winning stocks
At any given time in the stock market, there are outperformers, underperformers, and those that perform commensurately......
Quarterly earnings and earnings per share: The company profitability snapshot
Earnings season. Itās the roughly three-week period in mid-to-late January, April, July, and October when most......
Read before investing: Why the prospectus matters
A prospectus is a document that is legally required for every publicly traded stock, mutual fund, and exchange-traded......
Read the room: Why quarterly earnings conference calls are worth a listen
The quarterly earnings conference call is a long-running practice for most U.S.-based, publicly traded companies.......
Starting your stock analysis? Here are the best financial ratios to watch
Youāre eyeing a stock that trades at $250. Is that an attractive price? Itās hard to tell by just looking at the......
Statement of cash flows: Money spent on operations, financing, and investing
Do you have money tied up in stockāperhaps in the company you work for, or shares you bought because you like the......
Supply chain management: From raw materials to retail
Take a look around your home. Almost every product you seeāfrom the simplest grocery item to the most sophisticated......
The corporate balance sheet: Assets, liabilities, and ownersā equity
Unless you went to business schoolāor at least took an accounting or finance courseāyouāve probably never given......
The income statement: Money coming in and going out
Do you own your own business, or shares of stock in some of your favorite companies? Thatās great, but how can......
The stock investorās guide to Blue Ocean Strategy
The battle for market share often takes place within a relatively saturated and competitive environment. So you......
Top-down vs. bottom-up: Two paths to smarter stock picks
The stock market can feel like a complex machine with more moving parts than you can keep track of. Economic reports,......
Using Porterās 5 forces to analyze stocks and identify market leaders
When we think of stock analysis, we typically think of common measures like the price-to-earnings ratio, return......
What is a value chain, and how can you use it to make better investment decisions?
Imagine two brands of home coffee makers. Both appliances go through similar steps in their production. Yet, according......