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What is fundamental analysis?

Fundamental analysis is concerned with identifying whether a stock is over or undervalued. This is done by analysing factors such as the individual company’s perceived ability to generate a profit, focusing on company data, financial statements and decisions from senior management of the company(s).

Please note that financial analyses and ratios should not be looked at in isolation when making investing decisions.

Related Articles

Introduction to stock trading

  • What is a stock?
  • Where do stocks come from?
  • What is stock ownership?
  • Why do people buy stocks?
  • How could you lose money from buying stocks?
  • What are stock markets?
  • What is a stock broker?
  • What is a stock price?
  • What is a bid-offer spread?
  • What are stock charts?
  • What is commission?
  • What are bullish vs bearish markets?
  • What is technical analysis?
  • What is fundamental analysis?
  • What are analyst recommendations?
  • What are stock financials?
  • What is EPS (earnings per share)?
  • What is a P/E ratio (Price-to-Earnings)?
  • What is a P/CF ratio (Price-to-Cashflow)?
  • What is ROE (Return on Equity)?
  • What is Market Sentiment?
  • What are Market Sentiment Indicators?
  • What is the VIX?
  • How does News and Social Media impact stocks?

What is a stock?

Where do stocks come from?

What is stock ownership?

Why do people buy stocks?

How could you lose money from buying stocks?