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Stock Price Analysis

Free online stock price analysis.
Copyright StockPriceAnalysis.com

The Stock Price Analysis Module is a free browser based stock price analysis service. The easy to use web based interface calculates:

- Fair Value stock price;
- comparative stock Value;
- profit Target sell price;
- Stop Loss sell price;
- Price Earnings Ratio (PE) and Return % for each stock.

It also includes online access to Technical Analysis charts and Fundamental Analysis data. Trading to a Plan provides an overall guide to using the Stock Price Analysis Module to facilitate a trading plan.

The Stock Price Analysis Module is accessible from the menu on the left. This is the Help page for the Stock Price Analysis Module.


Overview

This Help page provides an outline of the Stock Price Analysis Module and instructions for use. Help for specific Stock Price Analysis Module Items can be accessed by clicking the ? after an item label.

Trading to a Plan provides an overall guide to using the Stock Price Analysis Module to facilitate a trading plan.



Operation

The Stock Price Analysis Module runs in your browser just like a normal web page. It is easy to use, and requires minimal input. Just open the Stock Price Analysis Module in your browser with JavaScript / Active Content enabled. Stock and analysis data is saved locally on your computer as a cookie. Cookies can only be accessed by the site that stored them or directly from your computer, no third party can access stored cookie data.



Methodology

The Stock Price Analysis Module is designed as an easy to use online tool for stock analysis. It provides basic Fundamental Analysis and access to online Technical Analysis charts. It also includes calculated Target and Stop/Loss points to provide trade indicators.

By providing a Required Return percentage and an Earnings per Share (EPS) value a basic Fair Price is calculated for each stock. This is used to calculate the Value offered by a stock at the Buy price. The Buy price is either the current market price of a stock or a price at which you would like to purchase the stock. Positive Value indicates the stock is under priced, negative Value indicates overpriced. Stocks with the highest Value indicate the greatest potential return on investment. Because the same Required Return percentage is applied to all stocks they can be directly compared. Clicking the Value heading in the Analysis Table sorts stocks by Value. The quality of this Value calculation is dependent upon the EPS used. The EPS should be carefully assessed considering the current and future market and business environment.

Applying Technical Analysis to stocks offering high value can then provide timing indicators for stock buy and sell actions.

Trading to a Plan provides an overall guide to using the Stock Price Analysis Module to facilitate a trading plan.



Instructions for Use

When you first open the Stock Price Analysis Module set input values for your Required Return %, Target %, and Stop Loss %. These are global variables and are applied to all stocks added to your analysis table. Specific Help for each item can be accessed by clicking the ? following the item label.

Once the global variables are set input a Stock Code and Exchange (not required for US exchanges) and click Add. This Adds your stock to the analysis table. Then input a Buy value for the stock (initially this would be the current stock price) and an Earnings Per Share (EPS) value. These should be in the same base units ie if the stock price is $10.00 and the EPS is 50 cents input 10 and .5 (ie 50c / 100 to convert it to $).

With these 2 values set stock data will be calculated and Value determined. A high the Value indicates potential upside in the stock price. Using the Value stocks can be sorted to determine stocks with best upside potential. Clicking the analysis table column Title sorts Stocks by column values. Clicking it a second time reverses the sort order. Clicking a Stock name in a row of the analysis table hides all other table rows providing single stock focus. Clicking it a second time displays all stock rows.

An automatic data save is performed when an input value is changed. All data is saved as a cookie.

Stock Code

Input the Stock Code.

Technical and Fundamental Analysis links use Yahoo Finance as a data source. If you are uncertain of a stock code you can search Yahoo Finance.

Example:

For Google input Goog.

For BHP Billiton input BHP.



Exchange

Input the Exchange Code. For US exchanges no exchange code is required.

Technical and Fundamental Analysis links use Yahoo Finance as a data source. If you are uncertain of an exchange code you can search Yahoo Finance.

Example:

For Google leave empty.

For BHP Billiton on the Australian Stock Exchange (ASX) input .ax.

For BHP Billiton on the New York Stock Exchange (NYSE) leave empty.



Add

Click to Add the Stock Code to the analysis table. If there is an Exchange value this is added to the Stock Code to give the full code for the stock on the required exchange.



Required Return %

Input the annual percentage Required Return for your investment. This is used in conjunction with the EPS value for each stock to determine a stocks Fair Value.

It should consider the risk associated with the stock and the return provided by alternative investments. For riskier investments the return should be higher.

This value is directly related to the Fair Value PE (Price Earnings Ratio) of all stocks in the table. The equivalent Fair Value PE is calculated for the current Required Return %.

This is a global variable applied to all stocks in the analysis table.

Example:

If a secure bank deposit offers 5% per annum interest. Then a riskier stock investment should provide a greater return ie 10%. The degree of risk and associated return premium may vary depending on economic conditions.



Target %


Input the Target percentage increase on the Buy price for your stocks.

This value is used in conjunction with the stock Buy price to determine the Target price. This can be considered your target profit. Selling when the stock reaches this price provides a gross profit equivalent to the Target percentage.

This is a global variable applied to all stocks in the analysis table.

Example:

For a Target profit percentage of 10% input 10.



Stop Loss %

Input the Stop Loss percentage decrease on the Buy price for your stocks.

This value is used in conjunction with the stock Buy price to determine the Stop Loss price. This can be considered as the maximum acceptable loss. Selling when the stock reaches this price limits losses to a gross loss equivalent to the Stop Loss percentage.

This is a global variable applied to all stocks in the analysis table.

Example:

For a Stop Loss percentage of 5% input 5.



Delete All

Click to Delete All Stock Codes from the analysis table.



Analysis Table

The Analysis Table lists each added stock and its parameters. Sort functionality is provided for each column by clicking the column title. Clicking an individual Stock name hides all other stocks.



Stock

This is the Stock Code and Exchange Code added to the table.

Click Stock to sort the analysis table by this column.

Click the Stock name to hide all other stocks, click it again to display all stocks.



Buy

Input the Buy price for this stock.

Initially this should be the current price of a stock and is available from the Fundamental Analysis link.

After analysis is complete and you have determined a price at which you would like to buy the stock adjust the Buy price accordingly.

Click Buy to sort the analysis table by this column.



Value

This is an indicator of the stock Value at the Buy price. It is the percentage variation required in the Buy price for it to reach the calculated Fair Value price. A positive Value may indicate the stock is under priced. A negative Value may indicate the stock is overpriced. A Value of 0 indicates the Buy price of the stock is at the calculated Fair Value price. The Buy price must change by a percentage equal to the Value for the stock price to reach the calculated Fair Value price.

Regardless of the global variables applied individual stocks can be rated by their Value. A higher Value compared to other stocks may indicate greater upside potential.

When the Value is positive the cell is shaded green, when negative it is shaded red.

The formula applied is:

Value = (Fair Value - Buy) / Buy * 100

Click Value to sort the analysis table by this column.



Buy-PE

This is the Price Earnings ratio of the stock at the Buy price. It indicates the number of years earnings required to equal the Buy price.

The formula applied is:

Buy PE = Buy / EPS

Click Buy PE to sort the analysis table by this column.



Buy Return %

This is the return on investment of the stock at the Buy price.

The formula applied is:

Buy Return % = 1 / Buy PE * 100

it can also be expressed as

Buy Return % = (EPS / Buy) * 100

Click Buy Return % to sort the analysis table by this column.



Target

This is the sell Target stock price. It is the price of the stock that is the Target % above the Buy price. It can be used to indicate the sell price at which profits are taken.

The formula applied is:

Target = Buy * (1 + (Target % / 100))

Click Target to sort the analysis table by this column.



Stop Loss

This is the sell Stop Loss stock price. It is the price of the stock that is the Stop Loss % below the Buy price. It can be used to indicate the sell price at which losses are limited.

The formula applied is:

Stop Loss = Buy * ( 1 - Stop Loss % / 100)

Click Stop Loss to sort the analysis table by this column.



Fair Value

This is the Fair Value stock price. It is the price at which the stock provides the Required Return %.

The formula applied is:

Fair Value = EPS / Required Return % / 100;

Click Fair Value to sort the analysis table by this column.



EPS

Input the EPS (Earnings per Share) per annum for this stock.

This should be in the same units as the Buy price. This is usually available from the Fundamental Analysis link or analyst estimates.

You can use EPS values for multiple years by inputting each years value separated by a comma ie ",". Comma separated values are calculated as the average for the years.

Click EPS to sort the analysis table by this column.



Technical Analysis

Click this link to access Yahoo Finance Technical Analysis charts for the Stock. By default basic charts are displayed. For enhanced interactive charts with the same parameters click the Try our Interactive Chart link just above the basic charts.

Technical Analysis provides an outline and additional detail on interpreting and using Technical Analysis.



Fundamental Analysis

Click this link to access Yahoo Finance Fundamental Analysis charts for the Stock.

Fundamental Analysis provides an outline and additional detail on Fundamental Analysis.



Delete

Click to Delete the Stock from the Analysis Table.