Fundamentals
To gather and assess economic information
What is the purpose of an economic analysis?
Plot ratio
What figure determines how much can be built on the land?
Value drivers
How does the company make its money?
Average Revenue Per User
What is a common metric for telecommunications company?
Cyclicals
Which sector has the highest earnings fluctuations?
Industry Life Cycle, Porter Five Forces, Business Cycle Reaction
What are the approaches to analyse an industry?
Integrity, good judgement, experience, rational
What are some good management qualities?
Net profit margin, Total asset turnover, Financial leverage
List the 3 components of the DuPont ROE analysis
If intrinsic value is greater than actual market price.
When do you buy a stock?
Cost-to-income ratio
What is one factor to consider when evaluating banks?
Industry players either consolidate, reinvent or fail.
What are some characteristics of the Decline Stage in the Industry Life Cycle?
Diluted EPS
What is the EPS after taking into account all potentially dilutive securities that a company has issued?