Picking a Sector
I. Economic and Business Cycle Analysis
A. Factors
B. Your Economic Outlook
II. Industry Analysis
A. Key Issues
B. Growth Cycle
C. Develop YOUR Industry outlook
D. Two Possible Companies for Investment
III. Your Fundamental Analysis
A. Financial Ratios
B.Interpret the numbers
C. Look at the Competition
IV. Stock Evaluation (Use one of the following)
A. Damondaran Valuation Model ( Viral updates5 Page 19)
B. Process from Chapter 8 (NPV = PV-Required investment) (Profitability index = net present value/initial investment) (Equivalent annual annuity = present value of costs/annuity factor.)
V. Summation and Recommendation
If needed the book IBSN is 9780134083728
