Altman Z-score
In a previous article on this website (What is the risk of investing?) it was mentioned that the largest risk for a company is bankruptcy. But how big is the risk of bankruptcy? And how can that risk be determined for a specific company? To answer these questions, the model of the Altman Z-score can be used.
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What is the risk of investing?
In short, risk is, in terms of an investor, the chance that an investment will result in a loss. To be more precise: Risk is the probability that the downward potential is partially used before investors can anticipate. The latter is important because if an investor knows in advance that a stock will fall, then the investor will not buy the share. The investor would try to make a profit of the downward potential of a share by, for example, buying put options or sell call options.
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Investment questions - part 2
Questions about the operations of a company have been discussed in an article which was published earlier. With the answers on the questions mentioned in that article, you can make a general overview of the company. Besides the general information, it is important for investors to know the financial situation of a company, especially the profit and cash flow. In this article, profit and cash flow questions are discussed.
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Investment questions - part 1
Like mentioned in earlier articles, investing is not just buying and selling of shares, but buying or selling of (a part of) a company. This means that you need to have a clear picture about the company. It is essential to know what the company does, with what activities it earns money and who decides about the direction of the company. This article hands questions that can be asked to gather information about a company and to draw a picture of the company. To keep track of the short-term performance of shares, a question about the current sentiment is discussed.
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Calculation tools
For this website, calculation tools are developed which should make investment decisions. One example of such a calculation tool is the calculation of the theoretical value of a stock. The calculations are mostly based on extrapolations of historical data.
The discount model is the first calculation module which is available. This model is used by successful investors like Warren Buffett to calculate the price of a stock. Because different investors have different perceptions about the calculation of a stock price, this tool has been developed as flexible as possible. |
Download
In the download section of this website, historical share prices can be downloaded. Also some supporting files of the discussed investment tools are available. Before you can download the files, you must log in. Don't you have an account yet? Create an account on this page. |
Company information
To select the right share, it is important to have information about the companies you want to invest in. Besides standard company information, the financial data needs to be clear. This information about individual companies can be found in the company menu, but it is also possible to make a comparison between different companies. This makes it possible to compare financial data of multiple companies in the same industry, for example. |
Investment tools
For an investor, several tools are available to make investment decisions easier. Many of these investment tools are very expensive, but there are also free tools available. The functions of these tools differ from collecting and storing daily stock quotes to making technical analysis. On this website various investment tools and their functionalities are discussed in articles.
The first tools which are discussed, are Stockbrowser and Stockvisor. |
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