Investment Analysis of [Company]

Introduction

Investment Analysis of [Company] mba finance project report Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two sides to this method: the quantitative and the qualitative. The quantitative side involves looking at factors that can be measured numerically, such as the company’s assets, liabilities, cash flow, revenue and price to- earnings ratio. Investment analysis of [Company] While the economic development of a particular country depends on a number of factors such as industrial growth and development, agricultural modernization, expansion of domestic and foreign trade, political stability, its dependence on the banking sector is undeniable to a large extent, and banks play a key role in improving economic efficiency by channeling funds from resource surplus units to those with limited access and/or the needy.

Therefore, to maintain the safety and soundness of private commercial banks in Ethiopia, maximum care should be taken. Any failure in the banking sector, particularly in a country where the financial sector  is dominated by commercial banks, will definitely have a contagious effect that can lead to bank runs and crises. There is also no measurement of performance among the country’s private commercial banks. This undermines the financial transactions of banks such as profitability, efficiency, liquidity, and solvency.

The limitation of quantitative analysis, however, is that it does not capture the company’s aspects or risks immeasurable by a number – things like the value of an executive or the risks a company faces with legal issues. Investment analysis of [Company] mba finance project report of these things is the other side of fundamental analysis: the qualitative side or non number side.