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Fundamental Analysis

Comparable Company Analysis

Fundamental Analysis Learn To Trade

Various Methods – Comparable Company Analysis At its core, Comparable Company Analysis is as the name states a way of comparing a listed company’s valuation to a subset of other listed companies’ valuation. This is done by comparing various valuation ratios or more known as “multiples” between the companies. These “multiples” are based on the…

Equities – Using a Discounted Cash Flow Model

Fundamental Analysis Learn To Trade

Background The most basic way of valuing a company is assessing, how much “profit” a company generates. Assuming everything else equal, a company that generates more profits should be valued more than a company that generates less profit. To be able to put a fundamental value of a company, professional investors look at how much…

Comparable Transaction Analysis

Fundamental Analysis Learn To Trade

Comparable Transaction Analysis has plenty of similarities with Comparable Company Analysis. The main difference is that in Comparable Transaction Analysis (also known as “Deal Comps”) instead of looking at what listed peer companies are trading at to discern potential value of our company, we look at what multiples actual previous transactions (acquisitions) have been conducted at.…

Event Driven Investing: Special Situations – Equities – Merger/Risk Arbitrage

Fundamental Analysis Learn To Trade

Event Driven Investing The basis for Event-Driven investing is to take advantage of potential pricing inefficiencies that occur prior to or after a corporate event. These can, for example, be a merger, an acquisition, a spin-off or bankruptcy. Professional investors such as hedge-funds like to look at these type of situations as they give attractive…

What are Earnings Calls and How to Prepare, Listen and Analyze Them

Fundamental Analysis Learn To Trade

How to Listen to the Call Historically earnings calls were only made available for institutional investors and analysts covering the company. However over the last 10 years or so they have become more accessible to the public. Usually, information about upcoming calls is available on a company’s investor relations website. Just as one can as…

TOP LESSONS LEARNED FROM BEING A VALUE INVESTOR

Fundamental Analysis Learn To Trade

As most professional investors often have different buckets of how they invest. For example have 45% of their funds focused on value-investing, another 45% on more trading oriented investing and 10% on more speculative long-shots. We will go through the main lessons we have learned over the years using a value investing approach to investing…