Financial statement analysis and common stock valuation

If you are an investor who values fundamental analysis, you are in the right place. If you need comprehensive financial ratios, read on. You already know that the analysis of financial statements allows you to buy cheap and sell high, now it’s time to put it into practice. Stock Analysis on Net is here for you.

Example company for today:

Philip Morris International Inc. (NYSE:PM)

Long-term Trends

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Analysis of Solvency Ratios
Quarterly Data

Examines Philip Morris International Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Philip Morris International Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Philip Morris International Inc. earnings.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Stock Price Trends

Analysis of Liquidity Ratios

Measures the adequacy of Philip Morris International Inc. cash resources to meet its near-term cash obligations.

Analysis of Revenues

Revenues as Reported

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Philip Morris International Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Philip Morris International Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Philip Morris International Inc. balance sheet.