Importance of Fundamental Analysis as Part of Stock Valuation

Do you invest regularly in the stock markets? Or are you someone who plans to start investing soon, but, doesn’t know the method to identify the right stocks to invest in?

 

In any case, the key to success in stock market investing is buying or selling a stock at the right price levels. The same stock may prove to be profitable for someone doing it the right way, and may turn into a loss-making investment for others. It is important to have stock valuation done – either by someone (who is an expert) or try doing the same yourself.

 

Fundamental analysis of stocks is a vital stock valuation technique that can help you identify the direction in which a stock price is likely to move in future. For a fundamental stock evaluator, every stock moves towards its intrinsic / real value. If this intrinsic value of a stock is below its market price, it indicates that you can buy the same for higher price levels. On the other hand, if the real value of a stock is above its current market price, it is indicating a sell action on the stock.

 

But, how does one come to know about the intrinsic / real value of any company stock? It is here that the fundamental analysis of a company and the stock helps you. This involves analysis of the existing and future health of the overall economy, followed by an extensive research about the company’s financial reports, management performance, growth potential, annual and quarterly performance history against its peers in the same sector, and so on.

 

Now, you may wonder how you can have so much of time to conduct such fundamental analysis. It is for this reason that you can rely on a team of professionals equity research analysts, like the one CL King & Associates. Equipped with such analytical capabilities, CL King is able to offer investment management services, inclusive of equity investment, portfolio management, etc. Call at 518.447.8647 or visit here: http://www.clking.com/