Jul 16, 2011

I Want To Learn The Fundamental Analysis

Posted by coolcoolbird at Saturday, July 16, 2011


Fundamental analysis is crucial subject, especially for long term investor.
In order to reduce my investment risk, I need to catch up this subject as soon as possible

Key points to Fundamental Analysis:


A. Earnings Per Share (EPS)
The Formula for calculating net EPS is:
Net Attributable Profit divided by Number of Shares Outstanding



B. Price - Earnings Ratio (PE ratio)
The formula for PE ratio is:
Current market price divided by earnings per share

C. Dividend Yield
The formula for Dividend Yieldis:
Dividend per share divided by Market price per share

D. Book Value Per Share
The formula is:
Total Shareholders' fund divided by number of shares outstanding

E. Net Return on Equity (ROE)
The formula is:
Net profit divided by total shareholders' funds

F. Return on Assets (ROA) & Return on Capital Employed (ROCE)
The formula is:
Net profit divided by total assets

 

 

 


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