Tuesday
Simple Investing Strategy
Watch your investing direction and what strategy you are looking at?
-Invest in the company you know well and put your trade according to desire value.
-Diversify your investment as much as you can with the best value.
- Don't invest in hot stocks that could make you loss into untoward direction just imagine when you ride a bicycle like the picture above.
1.The main objective of Business Strategy Analysis is to identify key profit drivers and business risks in order to assess company’s profit potential at a qualitative level.
2.The objective of Accounting Analysis is to evaluate the degree to which a firm’s accountancy captures the underlying business reality. We are analyzing the adequacy of the accounting methodology used by the company.
3.The main goal of Financial Analysis is to use financial data in order to evaluate the current and past performance of a firm and to assess its future sustainability. There are two important characteristics related to the Financial Analysis: It should be systematic and efficient and it should allow the analyst to use financial data to explore business issues.
4.This step focuses on forecasting a firm’s future. In this step we have to take into account all the conclusions taken from the three previous steps in order to make prediction about the future performance of the firm.
Prospective analysis depends considerably on the future business scenario. We have to take into account possible facts, such as mergers & acquisitions or the possibility of bankruptcy. As it is impossible to predict the future in an accurate way, we can make different scenarios and give different probabilities to each of them in order to obtain the final intrinsic value of the company.
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