Fundamental Analysis | Share Market for Beginners | How to Find Discounted Stocks for Investment?

About this Video

• Video Title: Fundamental Analysis | Share Market for Beginners | How to Find Discounted Stocks for Investment?
• Channel: Pushkar Raj Thakur: Stock Market Educator 📈
• Speakers: Pushkar Raj Thakur, Vibhu Raj Thakur
• Duration: 00:47:02

Introduction

This video educates beginners on fundamental analysis in the stock market, focusing on how to identify undervalued stocks for long-term investment. The instructors use a practical approach, demonstrating analysis techniques and emphasizing the importance of combining fundamental and technical analysis for successful stock selection.

Key Takeaways

1. Two Investment Approaches: The video highlights two main investment approaches: chart-based (technical analysis) and fundamentals-based (value investing). It stresses the benefits of combining both.
2. Fundamental Analysis Metrics: Key metrics for fundamental analysis are explained, including Price-to-Earnings Ratio (P/E), Price-to-Book Value Ratio (P/B), Price-to-Cash Flow Ratio (P/CF), Return on Equity (ROE), Debt-to-Equity Ratio, and revenue growth. The video provides formulas and interpretations for these ratios.
3. Importance of Long-Term Perspective: The video emphasizes the need for a long-term investment strategy (at least 5-6 years) for wealth multiplication, suggesting that failing to double your money within six years indicates poor investment skills.
4. Combining Fundamentals and Technicals: The video stresses the importance of using technical analysis (chart patterns, support/resistance levels) to determine optimal entry and exit points for investments, even when fundamental analysis indicates a good stock.
5. Debt-to-Equity Ratio: A crucial aspect of fundamental analysis is assessing the Debt-to-Equity ratio; a ratio less than 1 is preferred, signifying lower risk.