economy-industry-company analysis

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security analysis and portfolio management

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ECONOMY-INDUSTRY-COMPANY ANALYSIS:

ECONOMY-INDUSTRY-COMPANY ANALYSIS Presented by: Ratan kumar

ABOUT…..:

ABOUT….. The analysis of economy, industry and company fundamentals are the main ingredient of fundamental approach . Special steps in making investment decision. These can be looked at as different stages in the investment decision making operationally. To base the investment decision on various fundamentals, all the three stages must be taken into account.

ECONOMY ANALYSIS:

ECONOMY ANALYSIS A bout…. It becomes essential to understand the star economy of that country at macro level. The analysis of the state of the economy at macro level incorporate the economy has performed in the past,how it is performing in the present and how it is expected to perform future. Also relevant for to know how various sector of economy are going to grow.

UNDER ECONOMY ANALYSIS…comes:

UNDER ECONOMY ANALYSIS…comes

Future scenario:

Future scenario A strategic analysis method that some organizations use to make flexible long-term plans. It includes….. :

Continue……………………………:

Continue…………………………… Industry analysis Growth industry Cyclical industry Defensive industry

Investment making process..:

Investment making process..

Economic forecasting:

Economic forecasting Economic forecasting is the process of making predictions about the economy. Economic forecasting is a must for making investment . Industry and the firm depends upon how the economic book looks like in the future short term and long term.

Importance of industry analysis::

Importance of industry analysis: Firms in each different industry do typically experience similar levels of risk and similar rate of return. As such industry analysis, can also be useful in knowing investment worthiness of a firm. Mediocre stocks in a growth industry usually outperform the best stocks in a stagnant industry. This points out the need for knowing not only company prospects but also industry prospects.

CLASSIFICATION OF INDUSTRY:

CLASSIFICATION OF INDUSTRY Classification by reporting agency Classification by business cycle

ANALYTICAL FRAMEWORK:

ANALYTICAL FRAMEWORK Industry life-cycle stages Pioneering stage Expansion stage Stagnant stage Decay stage

COMPANY LEVEL ANALYSIS:

COMPANY LEVEL ANALYSIS It is the way investor takes the investment decision given his goal maximization For earning profits,investors apply a simple and common sense decision rule. AND THE RULES ARE:……….

…………………………………………………….:

……………………………………………………. Buy the share at a low price Sell the share at a high price

FRAMEWORK OF COMPANY ANALYSIS:

FRAMEWORK OF COMPANY ANALYSIS FINANCIAL NON-FINANCIAL

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.. SADHANYAWAD

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