Table Of Content

Fundamental Analysis For Dummies®, 2nd Edition Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com Copyright © 2016 by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Trademarks: Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc., and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc., is not associated with any product or vendor mentioned in this book. LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: WHILE THE PUBLISHER AND AUTHOR HAVE USED THEIR BEST EFFORTS IN PREPARING THIS BOOK, THEY MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS BOOK AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES REPRESENTATIVES OR WRITTEN SALES MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR YOUR SITUATION. YOU SHOULD CONSULT WITH A PROFESSIONAL WHERE APPROPRIATE. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit www.wiley.com/techsupport. Wiley publishes in a variety of print and electronic formats and by print-on- demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com. Library of Congress Control Number: 2016934821 ISBN 978-1-119-26359-3 (pbk); ISBN 978-1-119-26360-9 (ePub); ISBN 978-1-119-26361-6 (ePDF) Fundamental Analysis For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Financial Analysis For Dummies Cheat Sheet” in the Search box. Table of Contents Cover Introduction About This Book Icons Used in This Book Beyond the Book Where to Go from Here Part 1: What Fundamental Analysis Is and Why You Should Use It Chapter 1: Understanding Fundamental Analysis Why Bother with Fundamental Analysis? Knowing the Tools of the Fundamental Analysis Trade Making Fundamental Analysis Work For You Chapter 2: Getting Up to Speed with Fundamental Analysis What Is Fundamental Analysis? Comparing Fundamental Analysis with Other Ways of Picking Investments Putting Fundamental Analysis to Work For You Making Money with Fundamental Analysis The Fundamental Analysis Toolbox Chapter 3: Gaining an Upper Hand on Wall Street: Why Fundamental Analysis Gives Investors an Edge Better Investing with Fundamentals Relying on the Basic Info the Pros Use Figuring Out When to Buy or Sell a Stock Chapter 4: Getting Your Hands on Fundamental Data Getting In Sync with the Fundamental Calendar Getting up to Speed with the Basic Accounting and Math How to Get the Fundamental Data You Need Part 2: How to Perform Fundamental Analysis Chapter 5: Analyzing a Company’s Profitability Using the Income Statement Digging Deep Into the Income Statement Taking in the Top Line: Revenue Calculating Profit Margins and Finding Out What They Mean Comparing a Company’s Profit to Expectations Chapter 6: Measuring a Company’s Staying Power with the Balance Sheet Familiarizing Yourself With the Balance Sheet Understanding the Parts of the Balance Sheet Analyzing the Balance Sheet The Danger of Dilution Chapter 7: Tracking Cash with the Statement of Cash Flow Looking at the Cash-Flow Statement As a Fundamental Analyst How Investors May Be Fooled by Earnings, But Not by Cash Flow Understanding the Fundamentals of Free Cash Flow Chapter 8: Using Financial Ratios to Pinpoint Investments Using Financial Ratios to Find Out What’s Really Going on at a Company Getting Familiar with the Price-to-Earnings Ratio Putting the P-E into Perspective Chapter 9: Mining the Proxy Statement for Investment Clues Getting up to Speed with What the Proxy Statement Is Expanding Fundamental Analysis Beyond the Numbers Stepping Through the Proxy How Much Are We Paying You? Understanding Executive Compensation Checking In on Your Fellow Shareholders Part 3: Making Money with Fundamental Analysis Chapter 10: Looking for Fundamental Reasons to Buy or Sell Looking For Buy Signals from the Fundamentals Knowing When to Bail out of a Stock What Dividends Can Tell You about Buying or Selling a Stock Chapter 11: Finding a Right Price for a Stock Using Discounted Cash Flow How to Stop Guessing How Much a Company is Worth Performing a Discounted Cash Flow Analysis Making the Discounted Cash Flow Analysis Work for You Chapter 12: Using the Annual Report (10-K) to See What a Company Is Worth Familiarizing Yourself with the Annual Report How to Tackle a Massive Annual Report Examining What the Auditor’s Opinion Means For Investors Chapter 13: Analyzing a Company’s Public Comments and Statements Using Analyst Conference Calls as a Source of Fundamental Information Getting In Tune with Fundamental Information from the Media Knowing When to Pay Attention at Shareholders’ Meetings Chapter 14: Gleaning from the Fundamental Analysis Done by Others Reading Analysts’ Reports for Fundamental Analysis Clues Interpreting Credit-Rating Agencies’ Reports For Fundamental Analysis Finding Fundamental Data about Companies Using Social Investing Chapter 15: Performing “Top Down” Fundamental Analysis Broadening Out Fundamental Analysis to Include Monitoring the Economy Analyzing the Key Measures of the Economy’s Health Getting a Jump on the Future Using Leading Economic Indicators Part 4: Getting Advanced with Fundamental Analysis Chapter 16: Digging into an Industry’s Fundamentals Realizing How a Company’s Industry Can Influence Its Value How to Track How Sectors Are Doing Adding Industry Analysis to Your Fundamental Approach Chapter 17: Pinpointing Trends Using Fundamental Analysis Understanding Why to Consider Trends Finding Trends in Insider Trading Information Designing Screens to Pinpoint Companies Chapter 18: Avoiding Investment Blow-Ups with Fundamental Analysis Uncovering the Dangers of Not Using Fundamental Analysis Finding and Avoiding Financial Red Flags Chapter 19: Marrying Fundamental Analysis with Technical Analysis