Fundamental analysis


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Related to Fundamental analysis: Technical analysis

Fundamental analysis

Security analysis that seeks to detect misvalued securities through an analysis of the firm's business prospects. Research often focuses on earnings, dividend prospects, expectations for future interest rates, and risk evaluation of the firm. Antithesis of technical analysis. In macroeconomic analysis, information such as interest rates, GNP, inflation, unemployment, and inventories is used to predict the direction of the economy, and therefore the stock market. In microeconomic analysis, information such as balance sheet, income statement, products, management, and other market items is used to forecast a company's imminent success or failure, and hence the future price action of the stock.

Fundamental Analysis

In making investment decisions, the analysis of the facts that affect a company's underlying value. Examples of factors considered in fundamental analysis include debt, cash flow, supply and demand for the company's products, and so forth. For instance, if a company does not have a sufficient supply of products, it will fail. Likewise, demand for the product must remain at a certain level in order for it to be successful. Fundamental analysts recommend buying stocks in companies with strong fundamentals because they are essential for long-term success and stability. Fundamental analysis contrasts with technical analysis, which considers primarily short-term indicators. See also: Value Investing.

fundamental analysis

Analysis of security values grounded in basic factors such as earnings, balance sheet variables, and management quality. Fundamental analysis attempts to determine the true value of a security, and, if the market price of the stock deviates from this value, to take advantage of the difference by acquiring or selling the stock. Fundamental analysis may involve investigating a firm's financial statements, visiting its managers, or examining how a particular industry is affected by changes in the economy. Compare technical analysis.

Fundamental analysis.

Fundamental analysis is one of two main methods for analyzing a stock's potential return.

Fundamental analysis involves assessing a corporation's financial history and current standing, including earnings, sales, and management. It also involves gauging the strength of the corporation's products or services in the marketplace.

A fundamental analyst uses these details as well as the current state of the economy to assess whether the stock is likely to increase or decrease in value in the short- and long-term and whether the stock's current price is an accurate reflection of its value.

References in periodicals archive ?
Leading Oil & Gas National Oil Companies- Financial & Operational Fundamental Analysis and Benchmarking-2012
Fundamental analysis describes a category of stock selection methods that involves extensive analysis of publicly available information to assess a firm's past performance and anticipate its future prospects.
The top-down method is the most comprehensive form of fundamental analysis.
Global Top 20 International Integrated Companies- Financial & Operational Fundamental Analysis and Benchmarking - 2010, provides analysis on the financial and operational parameters of the Global Top 20 International Integrated Companies.
Global Top 20 International Integrated Companies- Financial & Operational Fundamental Analysis and Benchmarking - 2010 report is based on publicly available data filed with the US Securities and Exchange Commission (SEC) and other similar agencies worldwide.
equity and fixed income portfolio management, and its experienced team of senior portfolio managers utilizes a highly collaborative approach to construct portfolios based on fundamental analysis and bottom-up security selection in all major market sectors.
com software blends different types of data together, like fundamental analysis (EPS, sector analysis, correlation, market capitalization), technical analysis (the new floating moving average, Fibonacci levels, support/resistance) and market analysts' recommendations.
Extra-financial issues are best described as fundamentals that have the potential to impact companies' financial performance or reputation in a material way, yet are generally not part of traditional fundamental analysis.
The approach is disciplined in its use of detailed fundamental analysis to highlight stocks that are currently undervalued, but have a reasonable probability of realising a private market value (PMV) through the intervention of a discernible catalyst.
Based in Santa Barbara, California, Santa Barbara Asset Management (SBAM) employs bottom-up, fundamental analysis when selecting companies in which to invest.
The company focuses on fundamental analysis in this emerging asset class, combining its bottoms-up private equity philosophy with risk management programs designed to preserve capital and mitigate portfolio volatility.
We employ a bottom-up approach to selecting investments, combining time-proven fundamental analysis with original research to find companies whose market valuations we believe do not properly reflect future growth prospects.