Fundamental analysis

Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial, and other qualitative and quantitative factors. It is used by investors and analysts to assess the overall health of a company and its ability to generate returns in the future. Fundamental analysis is a long-term approach to investing and is based on the idea that the intrinsic value of a security is determined by analyzing its underlying fundamentals, such as its financial statements, management, competitive advantage, and industry outlook. Fundamental analysts look at a company's financial statements to assess its performance and potential. They also analyze the company's competitive position in the industry, its management, and its outlook for the future. By analyzing these factors, fundamental analysts attempt to determine a security's intrinsic value and compare it to its current market price. If the security is trading below its intrinsic value, it may be a good buy.