Fundamental analysis

Fundamental analysis of a business involves analyzing its income statement, financial statements and health, its management and competitive advantages, and its competitors and markets.The analysis is performed on historical and present data, but with the goal to make financial projections. There are several possible objectives: to conduct a company stock valuation and predict its probable price evolution,to make projection on its business performance,to evaluate its management and make internal business decisions,to calculate its credit risk.
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Security analysis that seeks to detect misvalued securities through an analysis of the firm's business prospects. Research analysis often focuses on earnings, dividend prospects, expectations for future interest rates, and risk evaluation of the firm. Used in the context of general equities. Antithesis of technical analysis. In macroeconomic analysis, information such as interest rates, G.N.P. , inflation, unemployment, and inventories are used to predict the direction of the economy, and henceforth the Stock market. In microeconomic analysis, information such as balance sheet, income statement, products, management and other market items are used to forecast a company's imminent success or failure, and hence the future price action of the stock.

a method of researching investment potential by concentrating on the value of the ccompany and its actual, and expected, business and financial performance of the company, based on the value of its net assets and on its historic, and forecast, profit record.

A method of valuation of stocks based on examination of fundamental factors, such as company earnings, growth prospects, and so forth, to determine a company's underlying worth and potential for growth.