Introducing https://fundamentalanalysisscore.in which strives to simplify Fundamental Analysis

I am thrilled to announce the launch of the https://fundamentalanalysisscore.in website, dedicated to simplifying fundamental analysis for stock market investing.

Previously, I delved into the concept of fragility in a series of posts, which you can find here

The Fragility series explores the four fundamental pillars of fragility which an investor needs to be aware of to eliminate fragility in their portfolio:

1. Pillar 1 - Avoid investing in Fragile Companies

2. Pillar 2 - Avoid investing in Overvalued Companies

3. Pillar 3 - Avoid investing in Companies with Management having a fragile mindset

4. Pillar 4 - Avoiding Shorter Timeframes

By adhering to these four pillars, we can minimize the impact of negative news and allow positive news to work its magic on our portfolio.

It's crucial to note that Pillar 4 is more about the investor than the company itself. Investors are required to give sufficient time to each of their investments for them to grow. On the other hand, the first three Pillars are what need to be evaluated while making an investment decision.

Based on these principles, I have conceptualized a company fundamental score, which is the core focus of the https://fundamentalanalysisscore.in website. The details are as follows:

The platform aims to simplify fundamental analysis using the approach based on the first three core pillars discussed in the fragility series.

1. Pillar 1 - Financial Strength: This is derived from the Fragility score card explained in the fragility series. The Financial Score in the website quantifies a company's financial strength/robustness, assigning a value between 0 and 10. It is derived from a combination of four key financial ratios based on the latest available audited/unaudited financial statements. The Financial Score is dynamic and subject to change every quarter or year, depending on a company's financial performance.

2. Pillar 2 - Valuation: The Valuation Score in the website quantifies the valuation of a company, assigning a value between 0 to 10. It is derived from a combination of historical 3-year, 5-year & 10-year price-to-earnings ratios, present price-to-earnings ratio, price-to-earnings-to-growth (PEG) ratios based on the last 5 years of earnings growth, and PEG ratios based on the last 10 years of earnings growth.

3. Pillar 3 - Management: This aspect is currently under development. While the website does not provide a Management score at this juncture, users should note that the Management score is a crucial factor in investment decision-making.

Company Fundamental Score: The platform calculates the company's fundamental score by combining the Financial Score and Valuation Score (i.e., Pillar 1 and Pillar 2), assigning a value between 0 to 10. This score simplifies risk assessment, with lower scores indicating lower risk and higher scores suggesting increased risk. It is imperative to consider this score before making any investment decisions. Presently, the company fundamental score does not include the Management Score, which users need to assess separately.

The fundamental analysis scores focus on companies with a market capitalization of over Rs 100 Crs, as smaller firms often operate in localized markets and inherently tend to be more fundamentally weak.

Visit https://fundamentalanalysisscore.in now to explore the simplification of fundamental analysis. If you found the website valuable, please share it with your friends and colleagues who might also benefit from it.

Disclaimer: The Company Fundamental Score is a tool designed for informational purposes only and should not serve as the sole basis for investment decisions. Users are advised to conduct thorough research and consult with financial professionals before making any investment choices.