Class 21:Introduction to Fundamental Analysis

We analyze a sportsman performance by his numbers in the game – Either be the runs, wickets, goals, etc. We judge a celebrity by his fan following. We judge a movie by its ratings, and a YouTube video by its views and likes.

We have certain standards and benchmarks to analyze, judge or review every aspect of our lives. The same should also go with our investments as well. Do we analyze the companies before investment? And How should we do that?

We do that with the help of Fundamental Analysis,

Fundamental Analysis is the evaluation of the intrinsic value of an asset/business and analyzing the business's financial statements; health; and competitors and markets. It also includes the overall analysis of the economy and the various sectors in it.

It is the most potent tool in finance for a comprehensive study of a company. It includes the study of both Qualitative and Quantitative factors of a company and helps in analyzing sales, profit, assets, liabilities, share capital, company's management, etc. And most of these factors are covered in the video lecture of the class.

We have introduced a number of new concepts in this class, by throwing light on topics like Assets, Current Assets, Liabilities, and Company Management.

We have also discussed various categories in which we can classify assets and liabilities.

In order to know more and learn about trading and investment in the Indian stock market, sign up for a complete video course by Kundan Kishore titled “A Complete Course on Indian Stock Market”.