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What is company analysis? Company analysis is a part of the fundamental analysis of the stocks. Under company analysis, an investor collects and evaluates the company’s financials, its track record, products, goals, missions, profitability, growth, etc. It helps investors while making the decisions for stock investment. Company analysis requires the careful examination of the company’s quantitative and qualitative fundamentals. Company analysis Qualitative and quantitative fundamentals Sources and uses of funds : Sources and uses of funds in an organization can be traced with the help of fund flow analysis. One of the major uses of the fund flow analysis is to find out whether the entity has used a short-term source of funds to finance long-term investments. Such methods of financing increasing the risk of a liquidity crunch as the long-term investment may not generate enough surplus in time to meet the short-term liabilities. Growth record : The growth in...

Q1. What is fundamental analysis? Answer: Fundamental analysis is the detail evaluation and analysis of the entity’s financial statement. It provides the information regarding the entity’s operation. With the help of financial analysis tools, one can easily forecast the company’s future. It gives the bird’s eye view of the performance and growth of an organization. Q2. What is a fundamental analysis of the stock? Answer: Apart from the technical analysis as we have discussed earlier, fundamental analysis is the detailed study of both macroeconomic and microeconomic factors that affect the company’s share price in the secondary market (i.e. stock exchanges).  In order to determine the fair value of the shares, we have to calculate the intrinsic value of the shares. Various fundamental analytical tools help an investor to determine the intrinsic value of the stocks. Q3. What are the major components of the fundamental analysis? Answer: Fundam...