Fundamental Analysis: Cash Flow, Stock Selection Criterion, Beta, Book Value, Stock Valuation, Earnings Before Interest, Taxes
Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Pages: 26. Chapters: Cash flow, Stock valuation, Stock selection criterion, Beta, Book value, Earnings before interest, taxes, depreciation and amortization, Period of financial distress, Terminal value, Business valuation standard, Chepakovich valuation model, Enterprise value, Earnings before interest and taxes, Restricted stock, Growth stock, Net Operating Assets, Earnings per share, NOPAT, Equity value, Goldman Sachs Asset Management Factor Model, Public float, Non-operating income, Short interest ratio, Shares outstanding, Net income per employee, Earnings before interest, taxes and depreciation, Beta decay. Excerpt: In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally potential market prices, and thus to profit from price movement - stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall. In the view of fundamental analysis, stock valuation based on fundamentals aims to give an estimate of their intrinsic value of the stock, based on predictions of the future cash flows and profitability of the business. Fundamental analysis may be replaced or augmented by market criteria - what the market will pay for the stock, without any necessary notion of intrinsic value. These can be combined as "predictions of future cash flows/profits (fundamental)," together with "what will the market pay for these profits?." These can be seen as "supply and demand" sides - what underlies the supply (of stock), and what drives the (market) demand for stock? In the view of others, such as John Maynard Ke...
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