Fundamental analysis

Fundamental analysis has been one of the most rewarding analyses in the history of stock markets. In fundamental analysis, you evaluate a security by using economic, financial, qualitative and quantitative factors to determine its intrinsic value. It is believed that macroeconomic and microeconomic factors can affect a security’s value.

These factors can be economic conditions, industry conditions, financial conditions and management’s proficiency. The main motive while doing a fundamental analysis should be to evaluate a security’s intrinsic value and compare it with the current stock price of the security, thus determining if the security is undervalued or overvalued.

How to do Fundamental Analysis of Stocks:

  • 1. Understand the company
  • 2. Study the financial reports of the company
  • 3. Check the debt
  • 4. Find the company’s competitors
  • 5. Analyse the future prospects
  • 6. Review all the aspects time to time
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