Fundamental Analysis Software for Stock Research
Stock Research Pro offers fundamental analysis software to guide both new and experienced investors through the process of identifying stock investment candidates and researching all aspects of company fundamentals to confirm financial strength and arrive at an intrinsic value of the stock. The software then calculates the current margin of safety to determine whether the stock presents a good investment opportunity at its current price.
What is Fundamental Analysis?
Fundamental analysis describes the process of examining a company through its financial statements, business model, management team, corporate culture and other elements that are unique to that company in an effort to determine its worthiness as an investment. The goal of the fundamental analyst is to arrive at the intrinsic value of a stock with the belief that the market often misprices securities. While there is never one agreed-upon intrinsic value, fundamental investors look to maximize their opportunity for success by looking at those stocks that offer the greatest “margin of safety”; the difference between the intrinsic value and the current share price.
The Tools of Fundamental Analysis
The tools that the fundamental analyst will leverage to conduct research includes each of the company’s financial statements and an analysis of financial ratios that can include:
• Earnings per share (EPS)
• Price/ Earnings (P/E)
• Price/ Earnings to Growth (PEG)
• Price/ Book (P/B)
• Dividend Yield
As part of the process, the investor will often visit the company’s website to learn about the management team, its background and track record of success.
All of this information can be compared against the company’s industry competitors to in order to establish benchmarks.
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The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.
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