Return on Investment (ROI) is a financial ratio that measures the profitability of an investment. It is calculated by dividing the net profit of an investment by the initial cost of the investment. ROI is usually expressed as a percentage.
Fundamental analysis of stocks involves evaluating a company's financial and economic fundamentals in order to determine its intrinsic value and assess its long-term investment potential. Some key factors to consider include: Earnings: Look at the company's net income, revenue, and earnings per share (EPS). Analyze the company's historical financial performance and compare it to industry averages. 1.Financial Health: Examine the company's balance sheet, cash flow statement, and income statement. Look for red flags such as high debt levels or negative cash flow. 2.Management: Research the company's management team and their track record. Look for experienced leaders with a history of successfully growing a business. 3.Industry: Analyze the company's place in the industry and look for trends that may impact its future growth prospects. 4.Valuation: Compare the company's stock price to its earnings, revenue, and other financial metrics to determine wh...
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