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Pieter Stalenhoef Explains the Approach Followed by Analysts for Fundamentals-Based Investing

As per Pieter Stalenhoef, fundamentals-based investing is a method of investing that first evaluates a company's intrinsic value, next it is compared to its current market price to determine if it is undervalued or overvalued. Most analysts start the process by looking at the broader market economy, specifically the macroeconomic factors that can affect a company's value. Further, they narrow down their analysis to industry-specific factors to figure out the industry trends before taking a look at the company itself.

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Pieter Stalenhoef Explains the Approach Followed by Analysts for Fundamentals-Based Investing

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  1. Pieter Stalenhoef Explains the Approach Followed by Analysts for Fundamentals-Based Investing Pieter Stalenhoef is a skilled financial industry professional who has completed his MS in investment management from Boston University. Thanks to decades of experience in equities investments, Pieter had the opportunity to work in responsible positions with several renowned firms such as Fidelity Investments and Evergreen Investments. Currently, he is settled with Highland Financial Group in the position of a Financial Planner.

  2. As per Pieter, fundamentals-based investing is a method of investing that first evaluates a company’s intrinsic value, next it is compared to its current market price to determine if it is undervalued or overvalued. Most analysts start the process by looking at the broader market economy, specifically the macroeconomic factors that can affect a company’s vale. Further, they narrow down their analysis to industry-specific factors to figure out the industry trends before taking a look at the company itself. Explaining the process further, Pieter Stalenhoef elaborates that the data from the company’s available financial statements is used by the analysts to evaluate the company’s revenue, earnings, return on equity, and other crucial numbers and ratios that can be used to determine its intrinsic value. A few other qualitative fundamentals such as company's business model, management’s expertise and competitive advantages are also considered in the intrinsic value.

  3. Once the value has been derived, it is next compared to the stock’s market price. While a buy recommendation is issued only in case the market valuation is lower, a sell recommendation, on the other hand, is given if the market price is higher. Thanks to his incredible wit and expertise, Pieter Stalenhoef has also made an appearance on Barron’s Magazine for his interviews about several companies including Femsa, a Mexican convenience store chain, and MBT, a Russian telecom company. He has also been an active member of the Boston Security Analysts Society for more than 18 years now.

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