ASX 1.00% $59.48 asx limited

where do you get it, page-3

  1. 1,201 Posts.
    lightbulb Created with Sketch. 12
    yep.

    you MUST be able to know how to value a company based on its fundamentals - FUNDAMENTAL ANALYSIS.

    you must go to co. announcements and dig out the half yearly and yearly reports.

    you need to know how to read these reports - esp the profit and loss statements, the balance sheet and the cash-flow statements

    you also need to go to Appendix 3b announcements , as the appendix 3b announcements by companies show you the number of shares and options on issue , and more that are being issued.

    no. shares and options is important to know when making an earnings per share analysis. i.e net profit divided by no.shares. Once you have EPS, you need to multiply this by a multiple (the price earnings multiple)

    Many online brokers have Earnings per share forecasts under research icon on website. Take this EPS forecast and multiply it by a PE mulitiple that you see fit (avg PE multiple for oz market is 17-18). But not all companys and industries can get this avg 17. All depends on growth of EPS. High growth = high PE if fundamentals are good. Mining stocks have lower PEs (less than 10)
    Small stocks with small market cap also have lower PEs.

    Return on Equity also important, Return on Assets, Net tangible assets, CASH-FLOW from operation also important. Debt/Equity etc.

    Buy a book on fundamental analysis.

    Without FUNDAMENTAL analysis youre a dead man in the stock game

    Technical analysis is charting, but its dangerous if you dont have a grasp at fundamental analysis.

    Hope that helps a little
 
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$59.48
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