Fundamental Analysis

Fundamental analysis is a method of evaluating a security by analysing the financial, economic, and other qualitative and quantitative factors. It is used to assess the value of a security, or the potential for a security’s value to increase or decrease.

For example, a fundamental analyst might analyse a company's financial statements to assess the company's financial health, market conditions that might influence the company's performance, and the company's competitive position. They might also consider other factors such as the company's management team and their track record, the company's debt levels, and the company's ability to innovate and respond to changing market conditions.