financeinfo

Hi all of you, in case of investment there are commonly two type of investment are made one is growth investment and other is value investment. Today I will discuss about value investment. Now what is this value investment? value investment is that investment which is buying the stocks of a company whose market price is below it’s intrinsic value and selling that stock when it’s market value reaches that value. Intrinsic value is the internal value of a stock now what is estimated by discounting the expected earnings of a company. As intrinsic value of a company depends on its earning and in turn it depends on industry earnings , economic environment and company’s earning. So to judge intrinsic value one should watch book value, P/E ratio of a company. Finally fundamental analysis of a company is derived from it’s intrinsic value.

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