fundamental analysis
Sign in to saveAlso known as fundamental financial analysis
analysis of a business's financial statements, health, and market
Wikidata facts
- Subclass of
- financial analysis
Show 2 more facts
- topic's main category
- Category:Fundamental analysis
- opposite of
- technical analysis
Sources (2)
via Wikidata · CC0
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Encyclopedic overview
Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings); health; competitors and markets. It also considers the overall state of the economy and factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. There are two basic approaches that can be used: bottom up analysis and top down analysis. These terms are used to distinguish such analysis from other types of investment analysis, such as technical analysis.
Fundamental investors use a bulk of financial statements data to get insights for their own investing decision making.
Excerpted from Wikipedia’s “fundamental analysis” article, available under the CC BY-SA 4.0 licence.