What is Fundamental Analysis? Fundamental analysis is a method of evaluating a security by examining its underlying fundamentals, such as its financial statements, management, products, and competitive landscape. Fundamental analysts believe that the price of a security should be based on its intrinsic value, which is determined by these underlying factors. By analyzing these factors, fundamental analysts attempt to identify undervalued or overvalued securities. Why Use Fundamental Analysis? There are several reasons why investors use fundamental analysis. First, it can help investors identify stocks that are trading below their intrinsic value. This can provide investors with an opportunity to buy these stocks at a discount and potentially earn a profit when the stock price rises to its intrinsic value. Second, fundamental analysis can help investors identify stocks that are likely to outperform the market in the long term. This is because fundamental analysts are looking at factors t...
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