The basis of the fundamental analysis lies into the professional financial results estimation. The intrinsic value of a company is a function of three major components: positive relation with the (1) cash-flows, (2) growth expectations and negative relation with (3) required rate of return.
In its gradual development our capital market develops more and more sophisticated sensitivity towards the public companies and sharpens its models’ precision. The public companies should not abandon their forecasts and projections used in the capital hunting process to attract the investors’ attention. Since the capital attracted from the market is attracted due to the expected business development and the consequent return on this development, capitalized in dividends or earnings based share price growth.
It is the market crisis that makes us better analysts
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3 comments:
What better that that title to express the embryo phase of the analysts in the developing markets!
I cannot completely agree with your comment. It takes quite advanced analytical and negotiating skills to flourish as an analyst in these markets. Do you work in developed or developing capital market?
It seems that the colleagues at the developed markets should go back to high school if we consider the losses of the largest investment banks in the world with the mortgage crisis. No offence, but please, show respect.
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