Have you ever thought of doing company analysis? If yes, than you must be certainly knowing how difficult it is to carry a complete company analysis. Most of the time, we prefer to either do some part of company analysis before investing in a stock or we buy research reports from institutions and make our investment decision. If you think of doing company analysis, than here is a checklist which can help you.
On looking to the checklist, you might feel that its better to buy research reports, however, this checklist will also help you to check whether research report is complete or not. Download the checklist for company analysis
A thorough company analysis, particularly as presented in a research report should:
1. Provide an overview of the company (corporate profile), including a basic understanding of its business, investment activities, corporate governance and perceived strengths and weaknesses.
2. Explain relevant industry characteristics
On looking to the checklist, you might feel that its better to buy research reports, however, this checklist will also help you to check whether research report is complete or not. Download the checklist for company analysis
A thorough company analysis, particularly as presented in a research report should:
1. Provide an overview of the company (corporate profile), including a basic understanding of its business, investment activities, corporate governance and perceived strengths and weaknesses.
2. Explain relevant industry characteristics
3. Analyze the demand for the company's product or services
4. Analyze the supply for the products and services including an analysis of costs
5. Explain the company's pricing strategies
6. Present and interpret relevant financial ratios including comparisons over time and comparisons with competitors.
Company analysis includes forecasting the company's financial statements, particularly when DCF method is used for valuation of a company.
About the Author
I am Prem, the founder of TheFinanceConcept. I am an Investment Advisor and a part-time blogger. I hold PG degree in MBA (Finance) and pursuing CFA. Blogging has become my passion from April 2011. I enjoy writing articles on Securities Analysis and Financial Planning.
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