{"id":8109,"date":"2022-04-18T16:19:45","date_gmt":"2022-04-18T10:49:45","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8109"},"modified":"2022-04-18T18:22:10","modified_gmt":"2022-04-18T12:52:10","slug":"capital-allocation-impact-on-stock-price","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/capital-allocation-impact-on-stock-price\/","title":{"rendered":"How Do ROCE and Capital Allocation Impact the Stock Price of a Company?"},"content":{"rendered":"\n

Harsh Vora is a proprietary investor and day trader with more than 10 yrs of experience in financial markets and is interviewed on ET NOW.<\/em><\/p>\n\n\n\n

There are two fundamental ways to participate in the financial markets, which encompass a wide range of assets \u2013 from the traditional instruments like stocks, bonds, real estate, and commodities to new-age instruments such as cryptocurrencies<\/a>. One way to participate in the markets is through short-term trading using technical analysis<\/a>. And the other, of course, is through long-term investing using fundamental analysis<\/a>.<\/p>\n\n\n\n

While technical analysis<\/a> includes analysing chart patterns and historical price behaviour to gauge future price movements, fundamental analysis<\/a> involves scouring through annual reports, conference call transcripts, exchange filings, and more to gauge the expected cash flow from the business in future. <\/p>\n\n\n\n

Behind every stock is a business. Fundamental analysis<\/a> of a stock, therefore, could take days or even weeks to complete. And yet, if one knows what factors to look for and where, they could save immense time and effort. In this article, we will briefly discuss one such factor that could make your analysis simpler: \u2018Capital allocation by the company<\/strong>\u2019.<\/p>\n\n\n\n

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