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{"id":19727,"date":"2022-01-18T14:04:49","date_gmt":"2022-01-18T14:04:49","guid":{"rendered":"https:\/\/businessecon.org\/?page_id=19727"},"modified":"2023-08-08T07:58:49","modified_gmt":"2023-08-08T07:58:49","slug":"value-investing-program-phase-ii-financial-analysis","status":"publish","type":"page","link":"https:\/\/valueinvestingnow.com\/home\/value-investing-program\/lessons-tutorials-resources\/value-investing-program-phase-ii-financial-analysis","title":{"rendered":"Value Investing Program \u2013 Phase II (Financial Analysis)"},"content":{"rendered":"

Value Investing Program – Phase II (Financial Analysis)<\/span><\/strong><\/span><\/h1>\n

\"Financial<\/p>\n

“The way to make money is to buy when blood is running in the streets.”<\/strong> – John D. Rockefeller<\/span><\/p>\n

Without a doubt, there is one financial characteristic of all successful corporations and small businesses, stable earnings<\/span><\/strong><\/a>. Financial analysis is a set of tools, methods, processes and ratios<\/strong><\/span><\/a> to assess an organization’s viability, stability and various profitability points along the matrix of time and production. Financial analysis provides the analyst with the confidence and security a good financial model presents. This phase of the membership program on this site gets into the nuts and bolts of company’s financial information. The goal is to identify an industry’s financial model and the three to five critical pieces of information a value investor will use to determine how the market will set a security’s price. With this information in hand, a value investor will then set an intrinsic, buy and sell value price. In effect, a range of value the market will bear for a security given the financial results of this organization, the industry standards the company adheres to and finally the impact the overall economy has on this company’s value.<\/span><\/p>\n

Over a course of more than 80 lessons and supporting research, a member of this site’s value investment club will gain the confidence necessary to build their financial model for an industry they select as their own. There are lots of examples and illustrations included to support each of the lessons. In addition, this section of the membership program includes supporting spreadsheets, schedules and worksheets to assist the member with building their model.<\/span><\/p>\n

Throughout this phase, a master example is provided tied to the hospitality sector of our economy, specifically hotel\/motel lodging operations. This phase will build this industry pool and provide the reader with not only an excellent industry pool for the site’s value investment fund, but also for their own personal use inside their fund.<\/span><\/p>\n

This phase of the program is divided into seven sections. The following identifies each section and provides an introduction to the student about the respective section:<\/span><\/p>\n

    \n
  1. Concepts –\u00a0<\/span>\n