Status Updates From Fundamental Analysis

FCF(Free casg flow) : Cash from operating activities - capital expenditures.
FCF is expected high(10 to 20% or even more)in 1st 10 years of a company from founding time, post 10 years the growth is called terminal growth rate and is generally low(<5%)

DCF Primer: Discounted cash flow: It's used to calculate the value of the company.
Future value: Amount*(1+opputunity cost rate)^ no of years.
Present value: Amount/(1+discount rate)^ no of years

Investment due diligence:
-Understanding business.
-Checklist(GPM,Revenue growth,EPS,debt,inventory,sales vs receivables,cash flow from operations,return on equity,business diversity,subsidiary)
-valuation.

Equity research:
- Understanding business set of 18 questions to be considered.

Generating stock idea :
-General observation
-Stock screener
-Macro trends.
- Sectoral trends
- Circle of competence
-Moat: the competitive advantage of a company sustaining it longer than others and making it quite difficult for others to copy the business models

Generating stock idea :
-General observation
-Stock screener
-Macro trends.
- Sectoral trends
- Circle of competence
-Moat: the competitive advantage of a company sustaining it longer than others and making it quite difficult for others to copy the business models

Chapters 8 to 10 are gut-wrenchingly boring! only formulas and ratios, damnn!

Quantitative aspects to consider before investing in a company :
- Profitability & growth.
- Margins& its growth.
- Earnings and its growth.
- Matters related to expenses.
- Operating efficiency.
- Pricing power.
-Matters related to taxes.
-Dividends payout.
-Cash flow from various activities.
- Debt short & long term.
- Working capital management.
- Asset management.
- Investments.
-Financial ratios.

The investment follows compounding aka longer you stay invested harder the money works for you, Qualitative aspects of a company before investing :

- Management background.
- Business Ethics.
- Corporate governance.
- Minority shareholders.
- Share transactions.
- Related party transactions.
- Salaries paid to promoters.
- Operator activity in stocks.
- Shareholders
- Political affiliation.
- Promotor lifestyle