Fundamental Analysis

Fundamental analysis is a method of evaluating a stock by analyzing financial statements, industry trends, and economic factors to determine its intrinsic value. Investors use this approach to identify undervalued or overvalued stocks based on a company’s financial health and future growth potential.

Key Factors in Fundamental Analysis:

• Financial Statements → Revenue, earnings, debt, free cash flow.
• Economic Conditions → Interest rates, inflation, industry growth.
• Competitive Positioning → Market share, brand strength, and innovation.

Unlike technical analysis, which focuses on price movements and charts, fundamental analysis examines long-term business performance. See also: Technical Analysis