By the fundamental analysis one tries to estimate the value development of a security. Contrary to the technical analysis it consults the evaluation of enterprises for the estimate due to firm specific data and the economic surrounding field.

A goal of the fundamental analysis is the determination of the "fair" or "appropriate" price of a share.

The procedure is based on the classical methods of the analysis proportionality factors share quotation-referred by balance and success estimation as well as on a set of, the dividend yield or the profit on exchange relationship. As result one receives from the fundamental analysis referring to under and/or overestimated shares and/or enterprises and thus impulses for an appropriate action strategy at the stock market.

The fundamental analysis is accomplished mainly by three different procedures.

Market analysis

Here the development of the market and the industry, in which the enterprise is active, is analyzed.

Strategy analysis

Here becomes the market positioning of the enterprise, which considers confidence in the management and the business plans of the enterprise.

Analysis of the enterprise and the share data

Here the profits and conversions of the enterprise are considered and compared with the current share quotation of the enterprise. Thereby develop different characteristic numbers, which permit statements about it whether a share over or underestimated is.

As a result of the medium completely new possibilities arise Internet of informing about the course of business from enterprises to also for (potential) the shareholder. A multiplicity of corporations, whose shares at the stock exchange are acted, reports from self-interest in investors in the form of legally prescribed Ad-hoc-messages, press releases, quarter reports and business reports on the continuation of the business. Also above mentioned characteristic numbers are published, which are for an evaluation of the share from interest.

Since this kind of the evaluation of a share makes a comparison to a selected total market, one needs as large an overview of characteristic numbers of as much as possible enterprises from this total market as possible to the realization, whether a share over or underestimated is. The individual corporation supplies however only information about itself, so that one must individually fetch the information about a multiplicity of enterprises with each of these enterprises. Here the information offer of pure information suppliers on the financial sector - it is in the Internet or in practice-regional newspapers - is or from Finanzdienstleistern, e.g. Banks, very helpfully. There characteristic numbers are published for the evaluation by enterprises for whole groups, e.g. for the 30 DAX values, 50 MDAX values, 30 TecDAX values or 50 SDAX values in the form of tables. In Internet free of charge published tables make beyond that partially a listing of the shares in assortment after a comparison for the characteristic number possible with the current share quotation, e.g. in accordance with the profit on exchange relationship (KGV). Thus much work is saved for criterion with the independent search for according to underestimated and thus promising shares.

Because this kind of the evaluation of a share makes a comparison to a selected total market, how it exists at present to the execution of the evaluation, it does not supply with to any reference to whether the yardsticks of this total market in the long-term comparison are to be regarded as appropriate. In order to be able to estimate also the present evaluation relations, one needs long-term numbers for the evaluation of the regarded total market.

Apart from the fundamental analysis, for the evaluation of market tendencies the Chartanalyse in such a way specified is also often used.

Articles in category "Fundamental analysis"

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