Fundamental Analysis


Investing research which focuses solely on the analysis of a company's internal financial statistics (balance sheets, income statements, revenues, earnings, future growth, return on equity, profit margins, etc.).

Fundamental analysts study everything from the overall economy and industry conditions to the financial condition and management of companies.   They attempt to fairly reconcile a company's estimated future growth rate, earnings, and dividend yield (if any) with its current market value.   In this manner, fundamental investors work to determine whether or not the shares are selling at level that is overvalued, undervalued, or fairly valued.





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