Fundamental Analysis

Our certified professionals often use fundamental analysis to produce quantitative values that can be compared with a security’s current price. This allows them to determine whether a security is undervalued or overvalued. Through this type of analysis, we measure a security’s intrinsic value. We evaluate economic, financial, and qualitative and quantitative factors to study anything that can affect a security’s value. Factors that can affect a security’s value include the overall economy, the conditions of the industry, and financial conditions.

Basics of Fundamental Analysis

Fundamental analysis looks at public data and economic indicators to determine the health and performance of a company. This helps us identify strong or weak companies, and is a great starting point to picking the best companies to invest in. We will value stocks through this analysis and help you determine which long-term and short-term investments will be beneficial for your financial situation. A stock’s intrinsic value is what a stock is really worth.

Investment Strategies Using Fundamental Analysis

The term “strong fundamentals” is often used to describe a company when you are talking with a financial analyst. Through fundamental analysis, your financial planner can create investment strategies that allow you to choose stocks that are worth more than their share price. This will give you the ability to buy stocks that are worth your money. Your financial consultant will evaluate many different factors through this analysis. They will be able to estimate whether a stock is available at a good buy through things such as:

  • Earnings per share
  • Price to earnings ratio
  • Projected earnings growth
  • Price to sales
  • Price to book
  • Dividend payout ratio
  • Dividend yield
  • Book value
  • Return on equity
  • Cash flow
Fundamental Analysis

All these factors combined will help your financial advisor make the right recommendations to help you choose stocks that will be of value for your money. When you use a financial advisor to evaluate stocks through this type of analysis, you benefit from the expert analysis of someone who knows where your money is best spent.

At O’Connor Portfolio Management, we are dedicated to delivering the right financial options for your unique financial goals. Talk to a qualified professional to find out how we can help you.