Do you want to find the next big investment opportunity but don't know where to start? Check out our free Excel stock analysis template! This template will help you quickly and easily analyze stocks to find those that have the most potential. It's simple to use – just enter in some basic information about the stock and let the template do its magic. You'll be able to see important metrics like the price-to-earnings ratio, debt-to-equity, and more. So what are you waiting for? Get started today and find your next winning investment!
What is fundamental analysis, and why should you use it to find stock investments?
Fundamental analysis is the process of evaluating a company's financial statements to determine its intrinsic value. This information can be used to make investment decisions, as it can give you an idea of whether or not a stock is under or over-valued. There are many different factors that you can examine when doing fundamental analysis, but some of the most important include the company's earnings, revenue, cash flow, and debt levels.
While there are many different ways to measure a company's financial health, using fundamental analysis is one of the most popular and effective methods. This is because it can give you a clear picture of a company's true value rather than just its stock price. This is important because it can help you avoid overpaying for a stock, which can lead to losses down the road.
How to use the free fundamental Excel stock analysis template?
The best part about this template is that you can simply change the company ticker highlighted. Then, in the green cell, all of the data will automatically update for you.
This includes key historical ratios like PE, EPS, gross profit, etc. As well as fundamentals like revenue, net income and real-time data such as price and market cap.
The template's data comes from using Wisesheets formulas that retrieve the data from the company's financial reports.
This empowers you to analyze hundreds of companies back to back and spot investment opportunities much faster.
As you can see, the spreadsheet also includes TTM data to give you a good idea of the company's trailing twelve months' performance, and you can apply any graphs you'd like to visualize the numbers more effectively.
Better yet, you can make any modifications you would like to the template to adjust it to your specific investment style.
How to get the free fundamental Excel stock analysis template?
It's easy! Simply click on this link where you will be taken to a google drive file, then click on download, and you will have it o your spreadsheet in no time.
Alternatively, you can also get the template by creating a free Wisesheeets account here, downloading the Excel add-on, and then on the templates section, clicking on the "Roaring Kitty Analysis Template." In your downloads folder, you will be able to see the file and make any changes you'd like.
The different components of the template
As you can see below the ticker, there are two key real-time data metrics; price and market cap. With Wisesheets, you can navigate to the WISEPRICE function menu to refresh the data whenever you'd like.
Below are important TTM ratios and metrics such as revenue, EBITDA over enterprise value, free cash flow over price, etc. Of course, you can add any additional ratios to help with your analysis.
On the right side of the spreadsheet, you have historical fundamentals and ratios that go from 2010 to 2020 and include TTM. Again, if you have Wisesheets installed, you can change the years, and the data will update to reflect the financial results of the particular company you are analyzing.
How to interpret and analyze the data in each component?
The real-time data metrics are helpful to compare against fundamental valuation metrics such as free cash flow to price. This gives you a good idea of whether the stock may be overvalued or undervalued.
The historical numbers provide you with context as to how well the company has progressed on its key numbers like revenue and net income etc., over time, and the likely direction of these numbers in the future. This information can be used later on for valuation or other more detailed ways to analyze a company. Ideally, you want to see a healthy level of growth in these numbers over time. Otherwise, it may be a signal that management has not executed well.
Examples of how to use the template to find investment winners
At the time that this post is being written, Apple seems like a potential investment winner. You can see how the price metrics seem reasonable, such as price to free cash flow, book value to price, EBITDA over price, etc.
At the same time, the company has improved all of its important fundamentals, such as revenue, gross profit, and net income, over time. All while maintaining healthy margins in the process. Therefore this is an opportunity to explore further and a potential investment winner over the long term.
However, keep in mind that simply because the spreadsheet returns good numbers does not mean that the stock is a good investment. Many other factors need to be taken into account, such as the quality of the management team, market prospects, competitors, etc.
The excel stock analysis template is a helpful tool to screen for stocks that may be undervalued or have good long-term prospects. However, it is important to remember that this is only one part of the investment process, and other factors, such as management quality, market prospects, etc., must be considered before making any investment decisions.
To your investment success!