Fox Capital: Presentation

What do we look at when buying a stock?

Horizontal analysis of the company:

Allows us to identify variations from one year or period to another. The first thing we'll look at here is whether the company is growing its business or not. In particular we need to look at: Operating result and margin, Net earnings and EPS, and Debt evolution.

Vertical analysis of the company:

Consists of obtaining ratios that indicate the current value of the company and allow comparisons with the rest of the industry and then with the market as a whole.

The main ratios we analyze are: Price/Earnings, Price/Sales, Enterprise Value/EBITDA, Enterprise Value/Total assets, Net financial debt/EBITDA, Return on capital employed (ROCE), Return on equity (ROE), and Earnings yield.

Technical analysis:

Trend identification, mainly via moving averages.

Other important factors to consider are the market's expectations about the company's future, the activity it develops and about that country's economy. The company's management and the market's trust in it are also very important.

The determination of stock value the market makes daily is not a science and market psychology plays a preponderant role. The fundamental thing is to interpret the signals given by financial information analysis and draw your own conclusions based on the study of financial statements and market experience.