Fundamental analysis can make you rich !
Lets find out
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Lets find out
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Indeed Fundamental analysis is something which can create real wealth for you but their is one more factor ignored by majority of people which can do it faster and in a more efficient way.
Yes merging Technical analysis with Fundamental analysis.
Fundamentals will help you to stay with the Best sectors and companies with technical will tell you when is the right time to hop on the train and get out.
Yes merging Technical analysis with Fundamental analysis.
Fundamentals will help you to stay with the Best sectors and companies with technical will tell you when is the right time to hop on the train and get out.
Fundamental analysis through Value evaluation tells us what is the fair value of the particular counter and the current price will tell us on the opportunity but when to get on it will be clear through Technical.
Additionally future growth opportunity combined with recent earnings will tell you on how the price might behave in few months and longer duration for coming years.
So, based on your intention you can pick best opportunities which may move very fast in short period of time or you can choose to stay with compounders.
Additionally future growth opportunity combined with recent earnings will tell you on how the price might behave in few months and longer duration for coming years.
So, based on your intention you can pick best opportunities which may move very fast in short period of time or you can choose to stay with compounders.
Lets understand this through examples:
Alkyl Amine
After March 2020 results, PE stood around 20 with ROCE at 41% with a gap with historical PE also.
This shows that the current valuation are pretty cheap and a good quick move may unfold.
1400-1600 can be a price where market may find the price comfortable as per price. (Till the earnings grow)
Alkyl Amine
After March 2020 results, PE stood around 20 with ROCE at 41% with a gap with historical PE also.
This shows that the current valuation are pretty cheap and a good quick move may unfold.
1400-1600 can be a price where market may find the price comfortable as per price. (Till the earnings grow)
Along with it Alkyl amine seeing growth in the company on both Revenue front and margin front which shows that it may even have a better year going forward. So, a growth opportunity as well.
But market is don't look too far in future so it will at max look at 1 year forward based on current earnings to calculate fair value and then adjust itself as per further earnings.
June 21 earnings were almost same so market kind of kept Fair price in same lines.
But market is don't look too far in future so it will at max look at 1 year forward based on current earnings to calculate fair value and then adjust itself as per further earnings.
June 21 earnings were almost same so market kind of kept Fair price in same lines.
Now the next earnings Q2 FY21 showed a uptick giving market a sign that this year might be better.
Now this will update the fair price based on growth and current valuations through PE & Forward PE.
And the price moved to that price range and then now its around fair zones.
Time to wait for earnings going further.
Now this will update the fair price based on growth and current valuations through PE & Forward PE.
And the price moved to that price range and then now its around fair zones.
Time to wait for earnings going further.
Its falling as the earnings normalized so, the price will get to new comfort fair zone till the value becomes better.
So, like this Value and growth works.
Along with it we can use technical to enter and exit also along with Fundamentals.
Note : Every sector has different way to work like broking sector don't get higher P/E so they move in P/E range instead of getting to new P/E range.
So, like this Value and growth works.
Along with it we can use technical to enter and exit also along with Fundamentals.
Note : Every sector has different way to work like broking sector don't get higher P/E so they move in P/E range instead of getting to new P/E range.
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1. Follow me @ItsVinay01 for similar knowledge based threads.
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To read more articles check the link:
wealthcraft09.substack.com
Disclaimer: Everything shared above is for learning purpose only and nothing is in any form any advice.
1. Follow me @ItsVinay01 for similar knowledge based threads.
2. Bookmark it and Retweet !
To read more articles check the link:
wealthcraft09.substack.com
Disclaimer: Everything shared above is for learning purpose only and nothing is in any form any advice.
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