My filters for Fundamental Analysis!

Fundamental Analysis
1

Filters:

  1. PAT should be increasing Year on Year
  2. Sales should be increasing Year on Year
  3. Expenses should be in proportion with the sales.
  4. EPS should be increasing Year on Year
  5. ROE should be increasing
  6. Reserves should br increasing Year on Year
  7. Other Incomes shouldn’t being the major component in the earnings
  8. Promoters holding kept unchanged of increasing. Avoid pledged promotor holding companies
  9. Net cash flow should be increasing. The company should have plenty of cash in their account
  10. Borrowings should decrease Year on Year

These are some of the filter which I apply while selecting the stock and then I will analyze them with the help of Technical Analysis.

6 Likes
2

Is there any other parameters one should look in a fundamental analysis?

3

Beta: The relationship between a stock’s price and its industry is known as its beta. Most of the time, the beta oscillates between -1 and 1. A beta number greater than zero indicates a correlation between the stock and the benchmark index. The correlation is inverse for beta values less than 0 mean shares. Higher volatility, which indicates higher asset risk, is indicated by a higher beta. The volatility decreases with decreasing beta.

Projected earnings growth : A stock with a smaller PEG ratio is fundamentally stronger as it has higher projected growth in earnings. A stock with a higher PEG ratio is generally avoided by investors.

May be we can refer to the Zerodha Varsity for detailed info

1 Like