What is Fundamental analysis ?

FUNDAMENTAL Analysis

* WHAT IS FUNDAMENTAL ANALYSIS ?

Fundamental analysis is a method of evaluating the intrinsic value of asset or investment by examining its underlying economic and financial factors. this approach involves analyzing various factors that affect the performance of the asset, such as macroeconomic indicators, industry trends, financial statements, and management effectiveness.

Fundamental analysis is typically used to evaluate investment in stocks, bonds, and other securities, although it can be applied to other asset classes as well. the goals of fundamental analysis is to identify investments that are undervalued or overvalued relative to their intrinsic value, which is the true worth of an asset based on its underlying characteristics.

* SOME OF THE KEY FACTORS THAT ARE ANALYZED IN FUNDAMENTAL ANANLYSIS INCLUDE:

1. FINANCIAL STATEMENTS :- This includes a company's income statement, balance sheet, and cash flow statement, which provide information about the company's revenue, expenses, asset, liabilities, and cash flow.

2. INDUSTRY TRENDS :- Fundamental analysis also examines broader trends in the industry in which the asset operator. this can include factor such as market size, competition, regulatory environment, and technological developments.

3. ECONOMIC INDICATORS :- Economic indicators such as GDP, Inflation, and interest rates can also impact the value of an asset.

4. MANAGEMENT EFFECTIVENESS :- Finally, fundamental analysis examines the quality of a company's management team and their ability to execute on their business strategy.

Overall, fundamental analysis is a comprehensive approach to evaluating investments that considers a wide range of factors that can affect an asset's value.