Stock Analysis Worksheet V4.0 - GETMONEYRICH (2024)

FAQs

How to analyse stocks using Excel? ›

Analyzing Past Prices:

Utilize VLOOKUP, HLOOKUP, and INDEX-MATCH tools in Excel to retrieve past price information for a particular stock. You can spot patterns, previous highs and lows, and possible support and resistance levels by comparing the daily, weekly, or monthly price movements.

Fundamental analysis attempts to identify stocks offering strong growth potential at a good price by examining the underlying company's business, as well as conditions within its industry or in the broader economy.

One of the most common methods of analyzing stocks is to look at the P/E ratio, which compares a company's current stock price to its earnings per share. P/E is found by dividing the price of one share of a stock by its EPS. Generally, a lower P/E ratio is a good sign.

The 2% rule is a risk management principle that advises investors to limit the amount of capital they risk on any single trade or investment to no more than 2% of their total trading capital. This means that if a trade goes against them, the maximum loss incurred would be 2% of their total trading capital.

Key Evaluation Ratios

Here are a few ratios commonly used to evaluate stocks: Earnings per share (EPS): Calculated by dividing a company's total earnings by the number of shares, a company's earnings per share allows you to compare the financial results of companies of different sizes.

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.

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Metrics like earnings growth, price-to-earnings (P/E) ratio, and profit margin can potentially help isolate possible danger signs for a stock. Traders often compare a stock to its sector and see how it's doing compared to other stocks. Case in point: the P/E ratio.

The price of a stock is largely determined by supply and demand. If demand is high, the price tends to go up, and if supply is high, the price tends to go down.

Price to earnings ratio –

For example, if the P/E ratio of the company is 15, then it means that an investor is willing to pay Rs 15 for Re 1 of the current earnings of the company. A high P/E can be seen as an overvaluation of the stock, while a low P/E may indicate undervaluation.

Is there a way to track stocks in Excel? ›

To insert a stock price into Excel, first convert text into the Stocks data type. Then you can use another column to extract certain details relative to that data type, like the stock price, change in price, and so on.

With the proper training and tools, you can increase your chances of success in the stock market. And Excel is one valuable tool that day traders can use to become a more consistent and profitable trader. But any tool is only as good as the person using it.

You can get stock and geographic data in Excel. It's as easy as typing text into a cell, and converting it to the Stocks data type, or the Geography data type. These two data types are considered linked data types because they have a connection to an online data source.