Fundamental analysis is one of two primary methods for analyzing a stock's potential return.
It involves assessing a corporation's financial history and current standing, including earnings, sales, and management. It also involves gauging the strength of the corporation's products or services in the marketplace.
A fundamental analyst uses these details as well as the current state of the economy to assess whether the stock is likely to increase or decrease in value in the short- and long-term. He or she also decides whether its current price is an accurate reflection of its value.
- Browse Related Terms: Bottom-up investing, Fundamental analysis, Good will, intrinsic value, Present value, Qualitative analysis, Quantitative analysis, Ranking