Fundamental Analysis
Definition
What is Fundamental Analysis?
The evaluation of economic, industryA more specific group of companies with closely related products or services., company, and financial information to estimate an investmentAn asset or commitment of money made with the expectation of future income, growth, or both.'s value.
Example in practice
How This Looks in Practice
The analyst studies revenue growth, margins, debt, and competitive position.
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Related Terms
Quantitative Analysis
The use of mathematical models, statistics, and structured data to evaluate investments.
Investment AnalysisQuality of Earnings
The degree to which reported profit reflects sustainable operations and is supported by cash flow.
Investment AnalysisEarnings Guidance
Management's public forecast or range for future revenue, profit, or other operating measures.
Market AbuseWash Trade
A trade or series of trades creating the appearance of activity without a genuine change in beneficial ownership.