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How to do investment analysis and then carry portfolio managemant? |
plz give me the details regarding my question as i have to prepere a project on this topic. Visit http://investopedia.com and learn fundamentals fromt there. but you need to learn technicals. For technical analysis in stock markets in INDIA, refer to http://crnindia.com Investment Analysis: You take the company Sales revenue for the past 15 years. Regress it against economic factors like gdp, interest rates, budget deficit or surplus and so on and so forth. Do a stepwise regression and get the highest correlated and leas F ration regression equation. Find the growth rate using methods like Walds or Bryant method on the revenue growth. Supply this years right hand side variables to the above equation and get this years expected sales. Find out the expected sales for the next five years using the growth rate found above. Find also the sixth years sales. Multiply all this by the profit margine on sales to get the profit. Multiply this by the payout ratio to get the dividends for each year. Find the beta for the stock using CAPM required rate return formula whic is ks=krf+beta(km - krf). Find the fifth year price by using the formula dividend on sixth year divided by (ks-g). Now do the dividend discount model to get the stock price for now. with F & T http://books.google.co.in/books?vid=ISBN... |
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