Basics of Fundamental Analysis

Fundamental analysis is the backbone of evaluating a company’s financial health and its intrinsic value. By looking at key financial metrics like earnings, revenue, debt levels, and market conditions, investors can assess a company’s potential for growth and long-term profitability. Unlike technical analysis, which focuses on price movements, fundamental analysis delves into the core financial performance and operational effectiveness of a company. This blog will break down the basic principles of fundamental analysis, including financial ratios, balance sheets, and income statements, and how they can guide your investment decisions.