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Equity Analysis - Investment - Nairaland

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Equity Analysis by theanalyst300: 10:05am On Apr 19, 2017
I am an equity analyst trained at the business school of the University of the West of England with experience analyzing companies quoted on the FTSE 100, NYSE, NASDAQ, NSE and some other stock exchange markets. Stock markets are filled with professional investors and novices alike, most often than not, the professionals gain what the novices lose because they have in their arsenal a number of tools to help them determine which stock to buy, sell or hold and when to initiate a decision to buy, sell or hold. What I bring to the market participants who are not professionals are these array of tools that can ultimately help them also invest wisely their hard earned money and not just rely on market price movement and news as this could lead into buying into a bubble that would burst sooner or later. These includes but not limited to the following:
• How Nigerian economic cycle determines where you should invest. for instance which sector should you invest in now that the economy is in depression, which sectors should you avoid
• How the macroeconomic variables can affects your stocks
• Analysis of companies financials, including financial ratios to determine the financial health of companies
• How companies business models , management decisions, strategies and dividend decisions affect stock price performance
• Determination of intrinsic or fundamental value of stocks and deviation from market value (I will write on fundamental and market values of stocks shortly).
• Technical analysis of stock price movement
• Finally investment recommendations, to buy, sell or hold.
This is what equity analyst call fundamental analysis.
This is a money back guaranteed service. If you are not satisfied with the analysis, you get your full payment back. Check my signature.
In my next post I will post a snap shot of 5 years projected free cash flow of a company quoted on the NSE which equity analysts use in determine the fundamental or intrinsic value of a company and also differentiate between the market value and fundamental value of a company.
Re: Equity Analysis by theanalyst300: 10:52am On Apr 19, 2017
theanalyst300:
I am an equity analyst trained at the business school of the University of the West of England with experience analyzing companies quoted on the FTSE 100, NYSE, NASDAQ, NSE and some other stock exchange markets. Stock markets are filled with professional investors and novices alike, most often than not, the professionals gain what the novices lose because they have in their arsenal a number of tools to help them determine which stock to buy, sell or hold and when to initiate a decision to buy, sell or hold. What I bring to the market participants who are not professionals are these array of tools that can ultimately help them also invest wisely their hard earned money and not just rely on market price movement and news as this could lead into buying into a bubble that would burst sooner or later. These includes but not limited to the following:
• How Nigerian economic cycle determines where you should invest. for instance which sector should you invest in now that the economy is in depression, which sectors should you avoid
• How the macroeconomic variables can affects your stocks
• Analysis of companies financials, including financial ratios to determine the financial health of companies
• How companies business models , management decisions, strategies and dividend decisions affect stock price performance
• Determination of intrinsic or fundamental value of stocks and deviation from market value (I will write on fundamental and market values of stocks shortly).
• Technical analysis of stock price movement
• Finally investment recommendations, to buy, sell or hold.
This is what equity analyst call fundamental analysis.
This is a money back guaranteed service. If you are not satisfied with the analysis, you get your full payment back. Check my signature.
In my next post I will post a snap shot of 5 years projected free cash flow of a company quoted on the NSE which equity analysts use in determine the fundamental or intrinsic value of a company and also differentiate between the market value and fundamental value of a company.

Below is a snap shot of a 5- year free cash flow projection of Transcorp. This method of valuation is called the Discounted Free Cash Flow (DFCF), discounted free cash flow method of evaluation is based on the principle that the value of a company can determined by discounting its projected or future free cash flow to arrive at a present estimated value. This value is generally referred to as the intrinsic value or the fundamental value.
The market price of Transcorp as at today 4/19/2017 is 0.82k, market participants have valued Transcorp to be 0.82k, from the snap shot, the estimated fundamental value of Transcorp is 0.89k, and this means Transcorp is undervalued by 8.5%. Should this encourage a buy, a sell or a hold investment decision? Investment decision cannot solely be based on one valuation method, analysts employ other methods such as the price multiples, residual income model and a complete analysis of the company.

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