Professional Documents
Culture Documents
Presented By:
B.SAI KIRAN (12NA1E0036)
Steps of Company
Analysis
Measuring Earnings
Forecasting Earnings
Applied Valuations
Measuring
Earnings
Measurement of earnings is based on two
types of information:
1) Internal Information consists of data and
events made public by firms concerning their
operations.
2) External sources of information are those
generated independently outside the
company. They provide supplement to
internal sources .
Depreciation Accounting
It recognizes that an asset will be exhausted
the following items of importance to the analyst:1) Contingent liabilities for taxes ,dividends, and
pending lawsuits.
2) Particulars on options outstanding ,leases , loans and
other financing arrangements.
3) Changes in accounting principles and
techniques,including bases of valuation, and the
currency effect on income.
4) Facts of importance occurring between the balancesheet data and date of submissions of statements
that might have a material effect on the statements.
Forecasting
Earning
Applied Valuations
Forecast not only the Expected Return but
Regression Analysis
TREND ANALYSIS
Trend Analysis of a Time Series utilizes regression
analysis.
Differentiation between Trend Analysis & Regression
Analysis
Examine behavior of economic series over a period of
time i.e.
one real variable which is being
regressed over a period of years
CONCLUSION:
THANK YOU