Fundamental Analysis

Fundamental analysis is a method of evaluating the intrinsic value of an asset, such as a stock, by examining its underlying economic and financial factors. The goal of fundamental analysis is to determine the true worth of an asset and to make informed investment decisions based on that information.

Fundamental analysis considers a wide range of factors, including a company's financial statements (such as its income statement, balance sheet, and cash flow statement), management quality, industry and market conditions, and economic indicators. By considering these factors, fundamental analysts aim to gain a comprehensive understanding of a company's financial health and future growth prospects, and to make investment decisions based on that information.

The fundamental analysis approach is often contrasted with technical analysis, which focuses on the study of price and volume data to identify trends and make trading decisions. While fundamental analysis can be a useful tool for long-term investors, it can be less useful for short-term traders who may be more focused on price action and market sentiment.