Basics of Stock Analysis | Fundamental Analysis Series – Part 5

Basics of Stock Analysis | Fundamental Analysis Series – Part 5 📊

In this video, I explain Fundamental Analysis from absolute basics using a simple fictitious company example on a whiteboard — no jargon, no shortcuts.

You will clearly understand how profits are built step-by-step from total sales and how analysts actually read a company’s financial strength.

🔹 What you’ll learn in this video:

✔️ How Total Sales convert into
➡️ Gross Profit
➡️ Operating Profit
➡️ Net Profit

✔️ How to calculate and interpret:
📌 Gross Profit Margin (GPM)
📌 Operating Profit Margin (OPM)
📌 Net Profit Margin (NPM)

✔️ What is Return on Equity (ROE) and why it is one of the MOST IMPORTANT parameters in stock analysis

✔️ ROE explained using the DuPont Formula:
ROE = Net Profit Margin × Asset Turnover × Financial Leverage

✔️ Simple explanation of each component:
🔹 Profitability (NPM)
🔹 Efficiency (Asset Turnover)
🔹 Business Model & Leverage (Financial Leverage)

🔹 Why this video is important:

Most investors look only at profit numbers. In this video, you’ll learn how to think like a fundamental analyst and understand what actually drives a company’s business quality and long-term returns.

This video is perfect for:
✅ Beginners in stock market
✅ Long-term investors
✅ Students of finance & commerce
✅ Anyone confused by financial ratios

📌 This is Part 5 of my Fundamental Analysis Series — watch till the end for complete clarity.

👉 If you find this helpful, LIKE, SHARE & SUBSCRIBE to learn stock market fundamentals in the simplest possible way.

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