Finances, accounting and audit

Fundamental analysis: the essence and necessity of application in portfolio investment (on the example of the Russian companies)

Economic Annals-XXI

Economic Annals-ХХI: Volume 183, Issue 5-6, Pages: 116-124

Citation information:
Puchkova, S., Brovkin, A., & Potanina, Yu. (2020). Fundamental analysis: the essence and necessity of application in portfolio investment (on the example of the Russian companies). Economic Annals-XXI, 183(5-6), 116-124. doi: https://doi.org/10.21003/ea.V183-11

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Svetlana Puchkova
D.Sc. (Economics),
Professor,
Moscow State Institute of International Relations (MGIMO University)
76 Vernadsky Ave., Moscow, 119454, Russia
svetlana_puchkova@rambler.ru
ORCID ID: https://orcid.org/0000-0002-7201-3156

Alexander Brovkin
PhD (Economics),
Associate Professor,
Moscow State Institute of International Relations (MGIMO University)
76 Vernadsky Ave., Moscow, 119454, Russia
brovkin_av@mail.ru
ORCID ID: https://orcid.org/0000-0003-1937-4072

Yulia Potanina
PhD (Economics),
Associate Professor,
Moscow State Institute of International Relations (MGIMO University)
76 Vernadsky Ave., Moscow, 119454, Russia
yu2mix@gmail.com
ORCID ID: https://orcid.org/0000-0002-9777-4402

Fundamental analysis: the essence and necessity of application in portfolio investment (on the example of the Russian companies)

Abstract. Fundamental analysis is the interpretation, assessment and forecast of analytical indicators at the macro- and micro-levels and expectations of market participants which can directly or indirectly affect the price dynamics of financial assets.

To develop a mathematical apparatus for solving the problem of classifying sets, it is necessary to consider the formal solution of the problem. This statement immediately shows the main issue – the lack of solutions for constructing classifiers for the problem of classifying sets.

The solution to the problem of investment analysis is expressed in the search for the overall best structure for all objects specified as sets available in the database.

The main purpose of using the additional investment Toolkit is to try to reconcile the results of comparative analysis by applying NPV and IRR Methods, more precisely, to link the latter to the former, since this approach gives priority to the net reported income of the project. The economic value of this research method lies in the ability to predict the ratio of NPV and IRR in the future with high accuracy, based on the data entered into the model.

Keywords: Fundamental Analysis; Portfolio Investment; Market Participants; Dynamics; NPV; IRR

JEL Classіfіcatіon: C21; G11

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V183-11

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Received 11.03.2020
Received in revised form 20.03.2020
Accepted 26.03.2020
Available online 4.06.2020

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