Equity Analysis: Multiples and Fundamentals

Stocks are among the most popular and best-known investments. They seem simple, and many brokers and banks offer easy access to stock trading. However, investors should first understand how to analyze a stock themselves and evaluate whether the investment in a share holds a promising potential or might be a dangerous matter.

This report will lead an investor through different aspects of investing, which must be considered before making a decision and investing in a company. The report first covers different types of shares and fundamental considerations before diving into stock analysis with important factors, key numbers, and multiples. These allow investors to compare the company to its competitors and determine which company is the most promising investment. Subsequently, the report will cover the Capital Asset Pricing Model (CAPM) since the key numbers of this model are omnipresent and build the fundament for investors. Moreover, Environmental, Social, and Governance (ESG) considerations and the different rating scales will be explained. Sustainability is an eminent trend that has gained friction worldwide. A good ESG rating can benefit a company, while a low rating can impose a risk to the prospect of a company.

To conclude, the last section applies all discussed topics and multiples to CrowdStrike to show how to apply these factors and information and make an example of how an investor should approach the analysis of a stock.