Abstract:
I have in this thesis tried to explain the different analyzing methods and then tried to apply an approach called the EIC approach by scientifically analyzing common stock valuation in the belief that analyzing the stock requires a top down approach to understand the stock and the effect of the macro economic variables on the stock. I have tried to use all relevant fundamental information available to investors to determine intrinsic values of stocks mechanically. I have first tried to explain the different concepts related to stocks and their analysis. These concepts are core to the ultimate concept of analyzing and valuation of the stocks. The second thing I have tried to explain is the concept of top down approach or the EIC approach to analyzing the stock. This approach encompasses the overall economic trend and their relation on the market, the analysis of the industry and its effects on the company.
