fundamental analysis

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Method of evaluating a security (bond, note, share) by investigating the intrinsic (fundamental) value of the business that issued the security. Fundamental analysts believe that a firm's (1) competitive advantage, (2) earnings growth, (3) sales revenue growth, (4) market share, (6) financial reserves, and (6) quality of management all reflected in its financial statements and together called 'fundamental information' are the true indicators of its earning potential and future value of its securities. In contrast, proponents of technical analysis focus on the past and present movements in the market price of a security to estimate its future value.

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You should try and come up with a good fundamental analysis that can lead you in the right direction for the long term,.
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We decided to use fundamental analysis, as opposed to technical analysis, to evaluate the company's financial position, we believe in our approach.
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The CEO of Microsoft did a fundamental analysis of the Nokia company before taking over it. The observed numerous elements that affect stock prices such as sales, price to earnings (P/E) ratio, profits, earnings per share (EPS), as well as macroeconomic and industry specific factors.
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