investment analysis

Investment Analysis

Research into data relating to the stability and profitability of businesses, especially to guide one's investing practices. At its most basic, investment analysis involves looking at financial statements to determine if a company is healthy. Balance sheets are important to investment analysis as they provide a ready-made means of investigating performance. However, the accounting methods a particular business employs may make it look more or less healthy than it really is. Investment analysts attempt to assess a business' actual health. See also: Fundamental analysis, Financial analysis, Investment adviser.

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investment analysis

A study of the potential return on a real estate investment to the owner, without reference to a potential sales price but strictly limited to the earnings and investment returns on the property. There are several different methods of analysis, some of which might be appropriate for particular properties and others not,or some of which are easier to use and favored by investors.The most common methods include

• Cash-on-cash return
• Payback period
• Internal rate of return