Fundamental

Determining Stock Intrinsic Value

A stock’s intrinsic value is the perceived “real value” of a stock as calculated through the value of a company’s expected future cash flows and other factors. If the value is determined to be higher than what the stock is currently priced at, the stock is considered to be undervalued. There is no [...]

The Importance of Company Earnings in Stock Valuation

Company earnings are the profits it generates. If you subtract the company’s costs from the revenue it generated over a specified period of time, you have its earnings. Stock evaluation should always include the examination of company earnings. Earnings are viewed as a significant component in analyzing the health of a given company and [...]

The Price-to-Sales Ratio in Stock Valuation

“The largest profits regularly result from buying stocks at low P/S ratios.”
- Ken Fisher, author of “Super Stocks”
The price-to-sales ratio (P/S) is a fundamental metric that calculates the value the market puts on each dollar of a company’s sales.
As any savvy investor knows, success comes from picking the right company at the right price. [...]

The Working Capital Ratio in Stock Analysis

The working capital ratio is a measure of a company’s efficiency and its near-term financial health. A company’s working capital can be positive or negative (depending on how much debt the company is carrying) and measures how much the company has available in liquid assets to build the business. The management of working [...]

The Power of ROIC

Return on invested capital (ROIC) is a fundamental financial metric used to analyze the level of profit generated by a company’s assets. ROIC is used to compare the efficiency of companies within a sector and is considered to be a highly reliable instrument for measuring investment quality. By determining the effectiveness of the [...]

Using a Discounted Cash Flow Calculator for
Stock Valuation

Discounted Cash Flow (DCF) is one of the primary tools used in stock research. Discounted cash flow valuation attempts to arrive at the value of a company or stock today, based on future earnings projections.
The Stock Research Pro DCF calculator calculator leverages Free Cash Flow (FCF) for valuation. FCF is a measure of [...]

What is Fundamental Analysis?

Fundamental analysis is the practice of studying the fundamentals of a company to determine if a business is a good investment. Fundamental analysis is a type of stock selection discipline that many consider to be the cornerstone of investing. Think of fundamental analysis as conducting a medical examination on a company to see [...]