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Fundamental analysis

• a) A method of evaluating securities by attempting to measure the intrinsic value of a particular stock. The method is based on fundamental factors, such as revenues, earnings, future growth, return on equity, profit margins, and so on, to determine a company's underlying value and potential for future growth. Fundamental analysts study the overall economy, industry conditions and the financial condition and management of particular companies. See also: Technical Analysis; b) A method of security analysis based on fundamental facts found in a company's balance sheet and income statement e.g. sales, earnings, dividends. These past records are examined to attempt to predict the company's future growth of sales and earnings as well as stock price growth, for example.

• Security analysis that seeks to detect missvalued securities by an analysis of the firm's business prospects. Research analysis often focuses on earnings, dividend prospects, expectations for future interest rates, and risk evaluation of the firm.

• Is the research approach which considers economic and monetary factors. For securities it evaluates the company as well as the industry and economy. For commodities, it looks at supply and demand in terms of actual usage, production and inventories among other things.

 
 

Follow this link for all the terms related to analysisfund.

 
 Embedded terms in definition
 Balance sheet
Demand
Dividends
Dividend
Earnings
Equity
Expectations
E
Firm
Future
G
Income statement
Income
Industry
Interest rate
Interest
Intrinsic value
Inventories
Production
Profit margin
Profit
Return on equity
Return
Revenues
Risk
Sales
Securities
Security
Stock
Technical analysis
Underlying
 
 Related Terms
 

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