Estimates Needed for Fundamental Analysis

D

Fundamental analysis is a method of evaluating the intrinsic value of an asset by examining its underlying economic and financial factors. When applying fundamental analysis to the market, an investor analyzes a company's financial statements, management, industry trends, and economic conditions to determine the company's underlying value.

The estimates that are needed while applying fundamental analysis to the market include:

A. Stream of shareholder benefits: This refers to the cash flows that a company generates and returns to its shareholders in the form of dividends or share repurchases. The stream of shareholder benefits is a key measure of a company's financial health and sustainability.

B. Earnings and dividends: Earnings refer to the profit that a company generates from its operations. Dividends are the portion of earnings that a company distributes to its shareholders. Both earnings and dividends are important factors to consider when evaluating a company's financial health and growth potential.

C. Required return or earnings multiple: The required return is the minimum rate of return that an investor expects to earn on their investment. The earnings multiple is the ratio of a company's stock price to its earnings per share. Both the required return and earnings multiple are used to determine whether a company's stock is overvalued or undervalued.

Therefore, the correct answer is D. All of the given options are needed while applying fundamental analysis to the market.