What is Fundamental Analysis
" The crux of Fundamental Analysis lies in its attempt to determine the economic value of a security (a generic term for stocks and shares)..."
Fundamental Analysis covers the area of research that studies economics, industry and company information for the purpose of making an informed judgement on a stock's value and its growth potential. The crux of Fundamental Analysis lies in its attempt to determine the economic value of a security (a generic term for stocks and shares).
Evaluating The Information
Cash flow Evaluation – this indicates the long-term viability of a business
Per Share Valuation
Often, analysts and fund managers look at stock valuation. The most common terms used are :
