Answer to Question #173972 in Management for ParagB

Question

Jassy plans to purchase equity shares of a pharma company named ‘Emerge Bio’ in an upcoming IPO with a price band of Rs. 150-175 per share. The company has been operating in India since 1998 has made a breakthrough with outstanding research in the field of virology. The company currently operates in Singapore, Australia, Europe and India with a total valuation of more than 3500 crores. As a financial planner you are required to advise Jassy on the following fronts:

 

a. What are the different aspects with respect to fundamental analysis of the company?

 

b. What are the different technical indicators which should be evaluated by Jassy before purchasing the shares?

Answer 1

.A) There are two different Fundamental Analysis Types and they are quantitative and qualitative. Fundamental Analysis Stocks that involve brand value, the financial performance of the company, management's decisions, and other similar factors can be termed as a qualitative approach.

B) .Earnings per share (EPS) This is the amount each share. ...

• Price to earnings (P/E) ratio. This measures the relationship between the earnings of a company and its stock. ...
• Price to earnings ratio to growth ratio (PEG) ...
• Price to book value ratio (P/B) ...
• Dividend payout ratio (DPR) ...
• Dividend yield.