Visual Analysis Methodology

"A picture is worth a thousand words"

Pictures convey a lot of meaning, they bring Infront the hidden truth. Children in the initial stages learn through picture books. In our increasingly data-driven world, it’s more important than ever to have accessible ways to view and understand data. That’s where data visualization comes in handy. With the goal of making data more accessible and understandable, data visualization in the form of dashboards is the go-to tool for many businesses to analyse and share information.

visualization is another form of visual art that grabs our interest and keeps our eyes on the message. When we see a chart, we quickly see trends and outliers. If we can see something, we internalize it quickly. It’s storytelling with a purpose. If you’ve ever stared at a massive spreadsheet of data and couldn’t see a trend, you know how much more effective a visualization can be.

Data visualization helps to tell stories by curating data into a form easier to understand, highlighting the trends and outliers. A good visualization tells a story, removing the noise from data and highlighting useful information.

Data visualization helps stock investors in several ways:

1. Provides a clear picture: Visual representation of data helps investors to easily understand complex financial data and identify trends and patterns that can impact stock prices.

2. Spot Trends: Charts, graphs and other data visualization tools help investors to quickly identify trends in stock prices, volume and other market data that can indicate a potential opportunity.

3. Detects outliers: Visualization can help investors detect outliers or anomalies in stock data that can indicate potential risks.

4. Comparisons: Investors can compare stocks, sectors or markets through visualization to identify opportunities for diversification and risk management.

5. Decisions: Data visualization can help investors make informed decisions about buying, selling or holding stocks by providing a clear understanding of market conditions and trends.

Overall,

data visualization helps investors make sense of large amounts of financial data and can be an effective tool for making investment decisions.

To Describe the Sector visually we have used descriptive statiscal notions such as Mean,Median, Distribution Pattern and Out liers. The statistic is computed from the data collated from the Annual reports of the companies and from reliable information sources. Last ten year data is taken for an attribute to allow it to go through at least one business cycle. Last 4 quarters are taken on annualised basis to allow the visualisation to be more relavant to the latest happenings.

There is a copius literature on the techniques of valuation. We recommend taking the classes of professor Aswath damodaran of New york Stern University on valuation. Our endevor is is to analyse the listed space companies following the AMFI report on Categorization of Large Cap, Mid Cap and Small Cap Stocks released on Halfyearly Intervals The stocks are ordered as per the NSE industry classification structure. Such ordered companies in the list are analysed to get the important ratios such as valuation ratios,profitability ratios and liquidity ratios.

The time series data of ratios is represented graphically over the time span. A Median value line also graphed allowing to see how many companies fallow a median value. Since valuation is an excersise based on some assumptions, the graphical presentation will give you an overview of range or band of the multiple being studied. It becomes easier to compare the selected company to compare visually how it ranks with in the industry group members