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Investment
Fundamental Analysis
Evaluating a company by looking at its financial statements, industry, management, and economic factors.
Fundamental analysis tries to find the true value of a company. It is the opposite of technical analysis. Long-term investors rely heavily on fundamentals, while short-term traders focus more on technicals.
It's like checking a car's engine, service history, and owner before buying it instead of just looking at the paint job.
Real world: Warren Buffett studies balance sheets, earnings growth, competitive advantage, and management quality before buying stocks for the long term.
💡 Fundamental analysis tells you what a company is really worth.