Company’s financial position can be check by various methods like Cash Flow Statement, Ratio Analysis, Balance Sheet and Equity price etc. There are two analysis are used which help to evaluate the price of an equity that is fundamental analysis and technical analysis. In fundamental analysis the stock prices are mispriced by market in short run and later it is corrected by market. When a mis-priced securities are traded in a market. The fundamental approach helps to determine the correct price of security. It includes three analyses: · Economic Analysis · Industry Analysis · Firm or Company Analysis With the help of economic analysis the economic condition of market being analysed like interest rate, inflation, recession period, political rules and regulations etc. In different economic conditions the stock prices of a compa...
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.