Welcome to all the stock investors to our brand new article related to basic fundamental analysis of the stock market for the investors who want to start their career in the stock trading. Share Outstanding: Numbers of shares in the market. It is traded daily in the secondary market.


Top 10 Stock Fundamental Analysis

 

1. Percentage (%) Change

It is the price percent change on the last day date.
 

2. Last traded on: 

The last traded date of the share. It is important for traders to know the last traded date because of some issues or announcements the trading of company share is stopped.

3. 120 day average

It is the 120 days average price of the stock

 

4. One Year Yield : 

How much price of this stock is increased or decreased in past 1 year.

5. EPS:

How much 1 units share earn. Total earning/Total Outstanding shares. It shows one units share earn. If the EPS is lower than Rs. 10 then it is fundamentally bad company. Always choose the share of company higher than Rs. 10.

6. P/Earning Ratio: 

How much investment should be done to earn Rs. 1.  Company P/E Ratio calculation Share current price/EPS. P/E Ration more than less than Rs. 30 is good. But P/E Ratio Less than Rs. 10 is not good Investors are not trusting. We cannot invest just by seeing PE Ratio.

7. Book Value: 

Assets value of company per share. Book Value less than 100 is risky. Better book value is good. If you purchase share at Rs. 100 and has 150 then you get 150 amount if company is liquidated.
 

8. Price to Book Value (PBV)

It shows per share price expensive than current price of share more than Book Value
Calculation is done as : Current Price of Share/Book Value of Share. Price to book value more than 5 is not good and less than 5 is a good company. PBV shows investment risk of company.

 

9. Dividend Paid: 

Past year dividend declared by the company. If dividend is given more then it is good company. On an average dividend and bonus more than 10 percent is a good company and we can invest the company for future.

10. 30 Days Avg. Volume: 

Everyday units purchased and sold on the market. Average less than 50k is not good and more than 1 Lakhs units is good. 

 

11. Market Capitalization: 

Issued share/current market price of share. Market capitalization with high volume is good and strong company. If we want to own whole share of the market then how much money we need is determined. 

 

12. Market Price: 

It is the daily or today or everyday price of the share or stock in the market.

Important Notice: We would like to share you that please invest in the share market after knowing fundamental analysis, Technical Analysis and other outside factors before investing in the stock market. We are not responsible for your loss in the stock market.  

 

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