FMP
Dec 27, 2023 8:34 AM - Parth Sanghvi
Fundamental analysis and technical analysis are two pillars supporting investment decisions, each offering unique perspectives on market behavior. In this blog post, we embark on a journey through the worlds of fundamental and technical analysis, uncovering their methodologies, strengths, and considerations to help investors make informed choices aligned with their investment objectives.
Fundamental analysis involves evaluating a company's intrinsic value by examining its financial statements, economic indicators, management quality, industry trends, and market conditions. Investors utilizing fundamental analysis aim to assess the company's underlying value and growth potential relative to its market price.
Technical analysis focuses on studying market patterns, price trends, and trading volumes to forecast future price movements. Utilizing charts, indicators, and statistical tools, technical analysts aim to identify entry and exit points based on historical market data and patterns.
Determining the suitable analysis method depends on investor preferences, time horizons, risk tolerance, and investment goals. Fundamental analysis suits long-term investors seeking to understand a company's intrinsic value, while technical analysis may benefit short-term traders aiming to capitalize on price movements.
Fundamental analysis offers a deep understanding of a company's financial health and growth potential but might not provide timely entry and exit points. Technical analysis excels in identifying short-term trends but might overlook fundamental factors influencing long-term value.
Both fundamental and technical analysis play pivotal roles in investment strategies, offering distinct insights into market behavior. Combining elements of both approaches or choosing based on the investment horizon and objectives can empower investors to make informed decisions aligned with their strategies and risk profiles.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...