Differentiating Growth, Defensive, Speculative and Cyclical Types
Identifying which companies are the pick of the litter and determining whether the intrinsic value of their stocks is above or below required rates of return.
Although it may not appear as a clearly drawn line, there is a difference between analyzing a company and evaluating its stock.
Generally, company analyses require not only examining key fundamentals, but also evaluating them within the overall economic and industry contexts, while stock evaluations involve determining stocks’ intrinsic values and identifying which are overvalued and which are undervalued compared to their respective risk levels. Keep Reading