Fundamental analysis is a method of evaluating securities by examining related economic, financial, qualitative, and quantitative factors that can affect a security's intrinsic value. Analysts study macroeconomic conditions, industry trends, and company-specific factors like financial statements and management to estimate a security's intrinsic worth and determine whether it is underpriced or overpriced relative to its current market price. The goal is to identify buy and sell opportunities by comparing the estimated intrinsic value to the current market price. Fundamental analysis focuses on a security's underlying value, which differs from technical analysis which focuses only on historical price and volume data.
Fundamental analysis is a method of evaluating securities by examining related economic, financial, qualitative, and quantitative factors that can affect a security's intrinsic value. Analysts study macroeconomic conditions, industry trends, and company-specific factors like financial statements and management to estimate a security's intrinsic worth and determine whether it is underpriced or overpriced relative to its current market price. The goal is to identify buy and sell opportunities by comparing the estimated intrinsic value to the current market price. Fundamental analysis focuses on a security's underlying value, which differs from technical analysis which focuses only on historical price and volume data.
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Fundamental analysis is a method of evaluating securities by examining related economic, financial, qualitative, and quantitative factors that can affect a security's intrinsic value. Analysts study macroeconomic conditions, industry trends, and company-specific factors like financial statements and management to estimate a security's intrinsic worth and determine whether it is underpriced or overpriced relative to its current market price. The goal is to identify buy and sell opportunities by comparing the estimated intrinsic value to the current market price. Fundamental analysis focuses on a security's underlying value, which differs from technical analysis which focuses only on historical price and volume data.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management).
The end goal of performing fundamental analysis is to produce a value that an investor can
compare with the security's current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).
This method of security analysis is considered to be the opposite of technical analysis.