What is Fundamental Analysis?

Fundamental analysis is a method of calculating the true value of a company by looking at its data. Investors pay close attention to companies to determine the rise and fall of their stock value. Fundamental analysis can be combined with technical analysis, which focuses more on market trends outside the company.

Where have you heard about fundamental analysis?

Traders use the term when analyzing a company's financial performance, operating results and other economic data to see if an investment opportunity exists.

The information you need to know about fundamental analysis...

Fundamentally, fundamental analysis is a way of trying to predict a company's future stock price. The method focuses on information other than the company's share price to measure its true financial position. Earnings, earnings and profit growth are some of the important data that investors are likely to focus on. In addition to economic information, investors may also focus on the industry or country in which the company is located. Warren Buffett, a widely respected investor and businessman, has admired this analytical strategy.