Pieter Stalenhoef describes fundamentals based investing as evaluating a company's intrinsic value based on financial statements and other qualitative factors, and comparing it to the current market price. He explains that analysts first look at macroeconomic factors, then industry trends, and evaluate a company's revenue, earnings, equity returns and other numbers to determine intrinsic value. Additional qualitative factors considered include business model, management expertise, and competitive advantages. Analysts issue buy recommendations if market price is lower than intrinsic value and sell recommendations if higher.

1. Pieter Stalenhoef Explains
Fundamentals Based Investing In
Detail

2. 3/1/2021

3. Pieter Stalenhoef Describes
Fundamentals Based Investing
 Former equity analyst at Wells Fargo, Pieter
Stalenhoef applied fundamentals based
techniques to investments while serving this
role.
 He describes fundamentals based investing as
a method of investing that first evaluates a
company’s intrinsic value and then compare it
to its current market price in order to
determine if it is undervalued or overvalued.

4. How Do Analysts Go About
Fundamentals Based Investing?
 Pieter Stalenhoef explains that the analysts usually
begin by looking at the broader market economy,
specifically the macroeconomic factors which can
affect a company’s value.
 Next, they narrow down their analysis to industry
specific factors to find out the industry trends before
they have a look at the company itself.
 When it comes to determining a company’s intrinsic
value, the analysts use the data from the company’s
available financial statements, which helps them
evaluate the company’s revenue, earnings, return on
equity, and other crucial numbers and ratios – all of
which contribute to its intrinsic value.

5. 3/1/2021

6. Some Other Qualitative Fundamentals
Considered While Evaluating a
Company’s Intrinsic Value
According to Pieter Stalenhoef, a few other
qualitative fundamentals that are considered
in evaluating the intrinsic value of a company
include –
 Company’s Business Model
 Management’s Expertise
 Competitive Advantages

7. Here’s what Follows…
 Once the value has been derived, the analysts
compare it to the stock’s market price.
 Only if the market price is lower, a buy
recommendation is issued. A sell
recommendation is given if the market price is
higher.

8. 3/1/2021

9. Thank You
Pieter Stalenhoef