Investments Analysis Case Study Help

Are you tensed with your investments analysis case study? Do you want to avail MBA Investments Analysis Case Study? Well! You have reached the right place. Investment analysis describes the process of analyzing an investment for income, risk, and release value. Investment analysis involves researching and analyzing security or industry to forecast its future performance and determine its appropriateness to a particular investor. The investment analysis procedure often assesses three factors: cash flow, release value, and risk.

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What is an investment analysis in MBA?


Investment analysis is termed the process of examining the viability of an investment. While doing an investment analysis, it is necessary to analyze and evaluate the positive as well as negative aspects of the concerned investment, its profitability, risk factor, and whether that would be an excellent investment for a portfolio. Various investment processes and lots of tools are available in the market. In simple words, investment analysis is all about analyzing an investment for cash flows, future risk, and release values.

The risk factor in an investment: Evaluation of risk factors and their effects is vital for any kind of investment. Risk comes in the way when the investment is big; the risk becomes likely and sometimes inevitable. High-risk factors in an investment debilitate the significance of the other two factors. For instance, if the risk is high in a certain kind of investment, it isn’t feasible to invest in that way if it shows the increased chances of higher income or it can provide high resale value after some period.

Cash flow in an investment: Cash flows occur in various forms like dividend, bonus payment, interest payment, etc. Cash flow investment analysis is crucial as through this process, the investor gets back the invested amount. Except for the returning of the invested amount, investment analysis determines whether the investment produces sufficient cash flow for compensating the risk taken or not.

Resale values of an investment: Profit from resale is made by gaining in the market values of the asset. When an investment is done on an asset and is sold after a certain period, and it produces any profit, then the investment is considered well and good. In investment analysis, evaluation of the resale value is essential.

The three-step process of investment analysis


Investment analysis is used to fulfill the specific investment targets for the investor from the advantage perspective. The investment analysis term comprises the elements of stock selection, asset selection, monetary statement analysis, plan implementation, and continual investment checking. The main objective of investment analysis is to examine the investment which more useful with minimum risk. Every investment management follows the effective and common procedure of analyzing the investment, and that is:

  1. Planning: It is the first step of the investment analysis procedure where investment policies and strategies are developed by the organization. The plan is developed by following the common policies of industrial economic actions of the economic body. It aims to create stability and ensure its credibility at current and in the future.
  2. Organizational function: Developed policies and investment strategies are crucial to identify the funding requirements, the type to raise funds, and the relationship between self and potential resources. Hence, seeking strategic investors is essential to get the most beneficial investment projects and portfolios.
  3. Monitoring: It is essential to get effective outcomes from investing activities during every stage of the investment process. These outcomes are achieved by coordinating and monitoring all the actions goals, targets, and corrective actions as per the changing condition in the investment market.

How to perform an investment analysis in Business?


  • Market index: It is defined as the hypothetical portfolio of investment that produces a segment for the financial market. It gives a portfolio of investment holdings at a broad level. It is used as a passive index investing by investors.
  • Market structure: It is considered a market organizational characteristic. This field of analysis makes us learn to concentrate on the characteristics that influence pricing and competitive nature.
  • Scenario analysis: It is the process of presenting ideas in a practical concept that check future outcome for a particular time. It does not demonstrate exact parameters but describes the development path that leads a business to positive and profitable future outcomes.
  • Utility analysis: Customer’s preferences and welfare are known as a utility function. The choice of customers regarding the products is based on the demand function. The utility analysis is based on two approaches as cardinal approaches and ordinal approaches.
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