How to analyze stocks in 16 steps | Brian Feroldi posted on the topic | LinkedIn (2024)

🌀How to analyse stocks🔥👌Fundamental analysis is a financial discipline favored by certain stock market investors. 👌 It focuses on the economic characteristics specific to the company and its market to try to assess its real economic value. 👌 Investors who use this type of financial analysis attempt to evaluate the real intrinsic value of a stock (share of a company) through the study of several economic elements (evolution of the level of activity, profitability, solvency, prospects, etc.). 🤝 As its name suggests, fundamental analysis therefore focuses on the fundamentals of the company and it is essential before any investment decision on the financial markets. 👉 Without it, the profile of the purchaser of a share would be more similar to that of a casino bettor, rather than that of an investor (shareholder owning a part of the company's equity). 👉 Carry out fundamental analysis is essential step in learning to invest in the stock market.👉 This 16 step framework offers a compréhensive approach to stock analysis for informed investment decisions| Look into the past as the raw material of the future |👍 Join the #right #fight for #energy #freedom and human flourishing.👍 Get Fossil Future (1) and subscribe EnergyTalkingPoints.com (2) which gives you true, powerful, and succinct talking points on today's most important energy, environmental, and climate issues. 👍 Be part of Africa's Renaissance's cardinal in Paris 🇨🇵 where the second chapter of Europe's future Energy History will be written (3)| The visions that we offer to our children shape the future | 👇 Source : (1) Fossil Future : Why Global Human Flourishing Requires More Oil, Coal, and Natural Gas--Not LessGet your copy here : FossilFuture.com(2) EnergyTalkingPoints.com :Join America's leading Platform for Pro-human, pro-freedom messaging and policies for politicians and citizens of the world and get the latest talking points delivered to your Inbox.Subscribe here : EnergyTalkingPoints.com(3) Energy Capital & Power - the African continent's leading investment platform for the energy sector. Learn about oil, gas, renewable energy and more https://lnkd.in/eti6Hzjh#AlexEpstein ===================================>#FossilFuture#drillbabydrill#Drivetherevolution#FromCaliforniaToAlexandria #mothernature #holyvirgin #leadership #handsonhands #globaleconomy 🦜

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Before investing in stock good to read..

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Thank you for sharing this comprehensive 15-step framework for analyzing stocks, Pieter. This is an invaluable resource that covers all the essential aspects of evaluating a company's potential for investment.I particularly appreciate the emphasis on understanding the business model and assessing its attractiveness. This step is crucial in determining whether the company has a sustainable competitive advantage and the potential for long-term success.Additionally, your inclusion of evaluating management capabilities and their alignment with shareholder interests is spot on. A strong track record and significant skin in the game are indicators of a management team that is committed to creating value for shareholders.Furthermore, considering industry attractiveness and identifying main risks are vital steps in identifying potential opportunities and threats that could impact a company's performance. By thoroughly analyzing these factors, investors can make more informed decisions.

How to analyze stocksHere's a 15-step framework you can use: 1.Business model-Do I understand how the company makes money?-Does the business model look attractive to me?2.Capability of management-Has management a strong track record in creating shareholder value?-Does management have skin in the game?3.Sustainable competitive advantage-What differentiates the company from its peers?-Does the company have pricing power?4.Attractiveness of the industry-Who are the main peers of the company?-Does the end market grow at an attractive rate?5.Main risks-What are the main risks for the company?-Are there any Black Swans?6.Balance sheet-Does the company have a healthy balance sheet?-Has the company a lot of goodwill on its balance sheet?7.Capital intensity-How much capital does the company need to operate?-Is the company investing a lot in future growth (growth CAPEX)?8.Capital allocation-How efficient does management allocate capital?-Does the company have a high and consistent ROIC?9.Profitability-How much $ does the company make per $100 in sales (profit margin)?-Does the company translate most earnings into free cash flow?10. Historical growth-Did the company manage to grow its revenue > 5%-Did the company manage to grow its earnings > 7%?11. Usage of Stock-Based Compensation (SBCs)-Does the company use SBCs to reward management and employees?-Are outstanding shares increasing or decreasing? 12. Outlook-Does the future look bright?-Can the company grow its revenue and EPS by more than 5% and 7%? 13. Valuation-At which valuation levels does the company trade right now?-Is the company undervalued or overvalued?14. Owner’s earnings-Owner’s earnings = EPS Growth + dividend yield-Did the company grow its owner’s earnings by more than 10% per year?15. Historical value creation-Did the company create a lot of shareholder value in the past?-At which rate did the company compound since its IPO?__📚 You liked this? In that case, you'll LOVE the free course that teaches you how to read Financial Statements: https://lnkd.in/ewnHQ_Sw

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Price is what you pay, value is what you get.Here are 10 valuation ratios everyone should know:1️⃣ Price-to-Sales (P/S)🎯 What? Valuation ratio that compares a company's stock price to its revenue💡 Formula?Stock Price / Sales2️⃣ Price-to-Book (P/B)🎯What?Compares a company's stock price to its book value💡 Formula?Stock Price / Book Value Per Share3️⃣ EV / EBITDA🎯What?Valuation metric that is calculated by dividing a company's Enterprise Value by its EBITDA💡 Formula?Enterprise Value / EBITDA4️⃣ EV / EBIT🎯What?Ratio that is calculated by dividing Enterprise Value by EBIT💡Formula?Enterprise Value / EBIT5️⃣ Price-to-Earnings (P/E)🎯What?Valuation metric that measures the stock price relative to a company's earnings per share (EPS)💡 Formula?Stock Price / Earnings Per Share6️⃣ Earnings yield🎯What?This ratio is the inverse of the Price/Earnings Ratio💡 Formula?EPS / Stock Price7️⃣ Price / Forward Earnings (Forward PE)🎯What?Metric that shows you the stock price compared to a company's EPS for the next 12 months💡 Formula?Stock Price / Expected EPS8️⃣ Price/Cash Flow (P/CF)🎯What?Multiple that compares a company's market value to its operating cash flow💡 Formula?Stock Price / Operating Cash Flow9️⃣ FCF Yield🎯What?Shows you how much FCF is available in relation to a company's market capitalization.💡 Formula?FCF Per Share / Stock Price🔟 PEG Ratio🎯What?Price of a company relative to its earnings while taking into account growth.💡Formula?(P/E Ratio) / Earnings GrowthWhat's next ?🤷👇Here’s how you can show your appreciation:👍 Give this post a thumbs up➕ Follow me for more Finance and Business Tips🔔 Ring the bell icon on my profile to be notified of future postscredit Compounding Quality #financialratio #financialanalysis #ratioanalysis #financialplanning #fpa #financeandaccounting #ebitda #ebita #cfo #financemanager #accountant #pricetobook #evonomicvalueratio #priceearnings #fcfyield #peratio

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analyse a stock

Elevate your investment game with this insightful 15-step framework for analyzing stocks! From dissecting business models to evaluating historical value creation, this guide is a goldmine for savvy investors. Kudos to the Pieter Slegers for sharing this wealth of knowledge. #stockanalysis #investingwisdom #knowledgeispower

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Stock Analysis 📈- Ever wonder how to pick stocks, what fundamentals to look for, establishing a rationale for your stock picking.🔕 Never rely on hear-say, herd mentality or invest in companies who don't understand and sector you don't master.

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Smart way to invest in #stockmarkets & #indianmarket #india #investindia #investinindia

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Detailed Analysis Of A Company: A FrameworkThis article explains the steps of detailed fundamental analysis of any company / stock: financial, business, management and valuation analysis https://lnkd.in/dNx8phf.

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