Buy, Hold or Sell
The qualitative factors that determine the stock price fluctuation can be grossly determined include the following factors:
- Other attributes
- Market Sentiment
In order to ascertain the stock price value fluctuation, we have the following financial factors:
- Debt Load
- Price Multiplier
- Book Value
- Cash Flow
- P/B Ratio
- P/E Ratio
The economic condition of the company can be determined by:
- Is the company revenue growing?
- Is the company making a profit?
- Is it in a strong position to beat competitors?
- What is the global and country index rank in the industry?
- Is it able to repay long-term and short-term debts?
- Is the management trying to add or subtract something in the books?
- How is the overall economy of the country?
- How is the industry going?
- Quantitative factors of the company?
- Quantitative factors of the industry?
Now quantitative factors of the company are:
- Business model
- Competitive Landscape
- Corporate Governance
Quantitative factors of the industry are:
- Market Share
- Industry Growth
Other Factors are:
- Management Discussion and Analysis
- The Auditors Report
- The notes to financial statements
- Accounting Methods
These are some of the gross figures that determine the stock price fluctuation.
A sample of the work, which I did with my room mates in Carnegie Mellon, that gives a detailed analysis of a portfolio after stock fluctuations is given here: SAAM Securities. (With Courstesy to : Manik Patil, Arun Neelakantan, and Srivatsan Pichai)