The Complete Guide to Fundamental Analysis: What it is, How it Works, and Why You Need It in Investi
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The Complete Guide to Fundamental Analysis: What it is, How it Works, and Why You Need It in Investi

Introduction: What is Fundamental Analysis

Fundamental analysis is a type of investment analysis that examines the economic and financial conditions of a company.

The goal of fundamental analysis is to assess the intrinsic value of a security. This is done by examining macroeconomic and industry trends, as well as the company's financial statements.

Investors use this information to determine whether they should buy or sell securities, or hold onto them for future profit potential.

Fundamental analysis can be applied to stocks, bonds, other debt instruments and currencies. It can also be used on other types of investments such as mutual funds or real estate (see also: Technical Analysis).

How to Use Fundamental Analysis When Investing or Trading

Fundamental analysis is a set of techniques used to assess the value of a security. It relies on economic and financial data, such as earnings, revenues and trading volume.

There are three main types of fundamental analysis:

1) Quantitative Analysis

2) Qualitative Analysis

3) Historical Analysis

How Fundamental Analysis Differs From Technical & Trend Analyzing

Fundamental analysis is a study of economic and company-specific fundamentals. It is often used in conjunction with other methods. Investors may use technical analysis to identify trends in the market, for example, and then use fundamental analysis to select companies that are likely to perform well during these trends.

Technical analysis is a study of past prices and volume of a security or asset to forecast its future price movements.

Trend analyzing is the process of identifying trends in data sets over time.

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