Fundamental analysis of companies and Industry made easy for the Layman

The desire for information availability and consumption spurned a whole new industry is called Equity Research. Equity Research may sound like a professional thing, but once you understand the meaning and acquire knowledge of the term, it is easy to understand.

It is a professional term used by Security analysists for fundamental analysis of companies in an industry, fundamental analysis of stock in a company and other factors also commonly called securities analysis. Investment Banking companies help individuals, firms, and companies with such analytical reports and information. It includes bonds, and commodities of the company as well.

The aims of Equity Research includes• Information that helps investors to decide where to put in their money• Information that traders need to understand whether to enter or exit the market• Information that financiers need to evaluate the company, to ascertain if they would help the company

Equity research includes 1. Economic Analysis: That includes fundamental analysis of stock, analysis of available resources, accounting for opportunity costs and measuring scopes of viable investments.2. Industrial Analysis: Includes fundamental analysis of companies, fundamental analysis of industries, market factors etc.3. Company Analysis: Includes analysis of business operations, share analysis and securities trends.

4. Financial statement Analysis: Profit and loss statements and balance sheet of the companies are analyzed by experts to prepare a forecast of the future trends.5. Report, presentation, and financial modeling: Presenting the overall report of all analysis put together and making a financial model for the companies is the main and last and final step of the research.

The application of equity research varies. Primarily, equity research is used in the mutual funds industry, investment evaluation, merger and acquisition deals, financial publications and charitable endowments. Investors wish to take calculative and informed decisions in the financial market and equity research reports help them in the process with the help of Investment Banking Companies. JM Financial is one such group that helps in financial decision making for shareholders.

Summary:

Equity Research is one of the most important parts of the work and aim of NBFCs and Investment Banking Companies. It helps create a transparent bridge between the investors and companies, by providing analytical reports of the Companies performance to other companies, firms and individuals who may be interested in investing or merging with such like minded companies. Securitas analysis helps in fundamental analysis of companies in an industry, fundamental analysis of stock in a company and other factors. Investment Banking companies help individuals, firms, and companies with such analytical reports and information.

Fundamental analysis of a company