Fundamental Analysis

What is Fundamental Analysis

Fundamental analysis is a way to determine an asset's value by looking at underlying, real world factors as opposed to the price. This can be done with companies, industries, or economies. With this analysis, traders look into the revenue, expenses, assets, liabilities, and all available financial information on a company to decide the true or future value of its stock. This is also a way to try to find out a stock's "intrinsic value" (the actual worth of the stock) as opposed to its selling or buying price.

In addition to looking into a company, fundamental analysis includes looking at a bigger picture of global events. Things like major financial announcement, earnings reports, even wars and political agreements, are all factors that can affect the market as a whole and specific assets. It is crucial for investors to stay updated on events that affect the market, which you can find in Stockpair's economic calendar.

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