Finance Explained

Hello Everyone welcome to our another blog on basic fundamental analysis you should know as a Investor while selecting stocks. These blog will be first part, small but as the basic are very less to know, by some time I will make a detail analysis on what should be taken into consideration as fundamental analysis while selecting stocks. These are only the financial term and some numbers to be taken while analysing a stock. What things matter while analysing a company is the Earnings, Sales, Debts, Dividend, and the last Price of the stock.

ROE (Return on equity):
The ROE should be more than 17%.

P/E (Price to earning ratio):
P/E should be lower than 15%.

EPS (Earnings per share):
EPS should be more than the last quarter.

ROCE (Return on capital employed):
ROCE should increase 15% annually.

Sales growth:
The sales of any company should be constant or more than its last quarter.

Revenue growth:
More than 10% each year more than 5-10 years.

The above 6 points are the basic points to be taken while analysing or selecting stocks. I will make a full detail review on fundamental and technical analysis on stock selection and we will go more depth into selection of stock for you. Thank you so much for reading the blog till here it means a lot. I hope you’ll also visit my last blog which is on GDP and it’s more types. Thank you.