We dig into the details that matter. Our approach to fundamental analysis focuses on real company metrics, market patterns, and practical research methods for Australian investors.
Exploring the mechanics of company evaluation and market assessment through detailed case studies and practical examples.
Cash flow statements tell you where money actually moves. Not just what the profit and loss says happened. We look at operating cash flow patterns over three to five years because that's where you spot consistency—or the lack of it.
Discounted cash flow isn't perfect, but it forces you to think about future earnings potential. The trick is being honest with your assumptions. We walk through real examples from ASX companies to show how sensitivity analysis changes everything.
A company doesn't operate in isolation. Competitive positioning, regulatory shifts, and sector cycles all play into valuation. We examine how Australian resource companies behave differently from retail or tech businesses when analyzing fundamentals.
Quick answers to questions we hear often about fundamental analysis approaches.
For a mid-sized company, expect several hours to review five years of financials, management commentary, and industry positioning. It's not quick work if you're doing it properly. Rushing through means missing important details that show up in footnotes or cash flow patterns.
Return on equity, debt-to-equity, and operating margin give you a solid foundation. But ratios change meaning across industries. A retailer and a mining company have completely different capital structures, so context determines which metrics tell you the most.
Not really. It's built for understanding long-term value, not next week's price action. Market sentiment, news cycles, and technical factors drive short-term moves. Fundamental analysis helps you understand what a business might be worth over years, not days.
It gets trickier with early-stage businesses. You shift focus to revenue growth rates, cash burn, competitive advantages, and management track record. The analysis becomes more about potential scenarios and what needs to happen for the company to reach profitability.
ASX announcements platform is your starting point—it's free and complete. Annual reports, quarterly updates, and company presentations all land there. For deeper sector analysis, industry association reports and ASIC filings add context that market data alone doesn't show.
The people behind our research and analysis content bring different perspectives from finance, accounting, and market research backgrounds.
