fundamental analysis definition

fundamental analysis

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.

fundamental analysis is in the Investing, Securities & Futures Trading and Statistics, Mathematics, & Analysis subjects.

fundamental analysis appears in the definitions of the following terms: fundamentals, intrinsic value, technical analysis and fundamental information

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