Fundamental Alaysis Hints
- Submitted by: johnjacob
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- Category: Other
- Date Submitted: 01/29/2010 01:42 AM
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Fundamental Anaysis: Product
What the company produces?
Market prospects of the product
Are there strong entry barriers
What is d kind of market size
How fast is the market growing?
Domestic or foreign market also
Who are d competitor in foreign also
Is it the sunrise or sunset product?
Promoter
Who are the promoters?
Are they family business or 1st generation promoter?
Is there any other venture if yes who are the bankers
What is d kind of succession plan tat d promoter has
Whether the promoters are technocrat or family business
Land and building
P & M
Margin money for working capital
Pre operative expenses / Preliminary expenses
Profitability Analysis:- (financial analysis )
Balance sheet lending – size of the balance sheet doesn’t change but given d existence to get the lil bit profit high within the balance sheet (Interest Coverage= EBITD/ Interest)
Profitability Ratio
Current Ratio
Turnover ratio
*NPV= -1000+GPn/(1+r)^n*, project is viable when NPV > 0
IIR (Internal rate of return) =* rate of discount where NPV = 0*, if IRR > r then the project is viable
As a promoter will only see IRR
As a banker he will Compare IRR with banker rate of interest
As a share holder u will see the IRR is greater than ur required rate of return
As a strategic Investor for calculating intrinsic value u will use WACC
Sensitivity Analysis:-
Use some parameter differentiation and compare where DSCR is gud fit and see the gud and worst scenario and also see by increasing the return and decrease the cost of material one at a time
*Technology part has* to be seen
For infrastructure business see whether there licence is valid or not if valid den for how long
Mortgage on non trasferabel assets
Hyothentication of transferable assets
If pleasure of share or not
*Interest rate and Repayment Schedule of the principle (Monatorium) a period u hav to pay only...
What the company produces?
Market prospects of the product
Are there strong entry barriers
What is d kind of market size
How fast is the market growing?
Domestic or foreign market also
Who are d competitor in foreign also
Is it the sunrise or sunset product?
Promoter
Who are the promoters?
Are they family business or 1st generation promoter?
Is there any other venture if yes who are the bankers
What is d kind of succession plan tat d promoter has
Whether the promoters are technocrat or family business
Land and building
P & M
Margin money for working capital
Pre operative expenses / Preliminary expenses
Profitability Analysis:- (financial analysis )
Balance sheet lending – size of the balance sheet doesn’t change but given d existence to get the lil bit profit high within the balance sheet (Interest Coverage= EBITD/ Interest)
Profitability Ratio
Current Ratio
Turnover ratio
*NPV= -1000+GPn/(1+r)^n*, project is viable when NPV > 0
IIR (Internal rate of return) =* rate of discount where NPV = 0*, if IRR > r then the project is viable
As a promoter will only see IRR
As a banker he will Compare IRR with banker rate of interest
As a share holder u will see the IRR is greater than ur required rate of return
As a strategic Investor for calculating intrinsic value u will use WACC
Sensitivity Analysis:-
Use some parameter differentiation and compare where DSCR is gud fit and see the gud and worst scenario and also see by increasing the return and decrease the cost of material one at a time
*Technology part has* to be seen
For infrastructure business see whether there licence is valid or not if valid den for how long
Mortgage on non trasferabel assets
Hyothentication of transferable assets
If pleasure of share or not
*Interest rate and Repayment Schedule of the principle (Monatorium) a period u hav to pay only...