Form a paper on fundamental analysis with examples. The examples should emerge from one common company of your choosing to give the discussion a better flow.
Some important techniques for this assessment include basic financial ratio analysis and models of valuation. The more advanced analysis will make use of discounted cash flow models for developing estimates of intrinsic values.
Evaluate the following in your paper:
- Methods to assess the macroeconomic environment and the industry.
- The value of financial ratio analysis in the context of common stock investing. Provide a discussion of the decomposition of ROE including the deeper evaluation of this decomposition into the common-size income statement.
- The concept of the intrinsic value and compare it to the notion of a market price. Present and describe the following valuation model approaches: Discounted Dividend Model, Price-Earnings Ratio Model, and Free Cash Flow Model.
Support your paper with minimum of five (5) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 5-7 pages not including title and reference pages