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How to Evaluate Stocks? Part I


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 important number for investors to know when considering a stock. It provides a measure of efficiency.

  • Picking Stocks begins with Assessment of Need

The first step in picking a stock is to determine where you need to diversify your portfolio.
Be Careful of Investing in Safe StocksInvestors often turn to safe stock sectors such as utilities during difficult economic times, but not every company in safe sectors are good investments.

  • No Bad Time to Invest in Growth Stocks

You can find growth stocks in almost any market, but you may have to look harder in some markets than others.

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