Volume: 1, Issue: 1
INTRODUCTION
There is no subject more exciting than investments. Within investments, the movement of stock prices and the study of stock behavior have always been intriguing. From base dinner discussions to serious academic debates, the subject accommodates a number of theories, postulates and patterns. A lot of discussions have been on the dos and don'ts for successful investing and on the principles governing stock analysis. In fact, almost the entire world of financial theory finds applicability in stock analysis. There are thousands of stocks available on a stock exchange; an investor is always in a dilemma which stock to buy, whether the stock will fetch me any returns, is there any scope for the industry to grow or should I look into some other sector. One method to find solutions for these questions is fundamental analysis. Wherein we can kno\y where an economy is heading, favorable industries in such economy and potential companies in such industries. Valuation of companies can be done using P/E valuation model, which will explain the expected growth in the company.
