Prajna Capital - An Investment Guide

Evaluation of stock is done with Fundamental Analysis Tools. Fundamental Analysis Tools - These are the tools of fundamental analysis. Fundamental analysis relies on several tools to give investors an accurate picture of the financial health of a company and how the market values the stock. What is an Economic Moat An economic moat protects a company from competitors by creating obstacles for entry into the market. A Good Company with a Bad P/E A good company can be a risky investment if you pay too much for it. The P/E is a good tool for a rough idea about a stock's value. Why Free Cash Flow is so Important Free cash flow is one of the most important numbers you need to know about a stock. It will help you determine a fair price for the company's stock. Earnings Per Share - How to Calculate EPS Earnings per share or EPS is one way to compare companies, but it does not tell you about market value. ROA is a Leading Measure of Company's Efficiency Return on Assets is an imp...