Quote:
Originally Posted by lewdog
I am honestly curious how you evaluate a company. Or how anyone investing in individual stocks evaluates companies. Many ways to do it and I am just reaching the tip of the iceberg on knowing where to start when analyzing. Would love to hear suggestions from anyone. |
Don't conflate trading analysis with investing analysis. While they can overlap at times, financial analysis of a company rarely if ever relies on a chart.
Trading analysis always relies on charts and rarely on fundamentals, that why traders will buy a very over priced stock on the way up and short an undervalued one on the way down.
Learn to read a 10-K and 10-Q along with knowing some basic tests to run against a balance sheet
Current Assets - Current Liabilities is called the "Acid Test". It's tests a companies true cash position with working capital.
There are a bunch of them.
Also look at how a company has performed against their piers:
-Do they have better or worse margins?
-Is there market share increasing or decreasing?
-What is their yield per employee?
https://quizlet.com/6020906/accounti...s-flash-cards/
You will be able to really analyze a company when you learn some of these.
