Introduction

Fundamental analysis is a method of evaluating a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors. It aims to measure a security's true value and predict its future performance.

Key Components

• Financial Statements: Analyzing income statements, balance sheets, and cash flow statements.
• Economic Indicators: Considering macroeconomic factors such as GDP, unemployment rates, and inflation.
• Industry Analysis: Evaluating the performance and trends within a specific industry.

Benefits

Fundamental analysis helps investors make informed decisions based on comprehensive data, reducing the risk of investment.

Conclusion

By understanding and applying fundamental analysis, investors can better identify undervalued securities and make more strategic investment choices.