UNDERSTANDING FUNDAMENTAL ANALYSIS
Fundamental Analysis: Fundamental Analysis is a method of measuring the intrinsic value of the stock. It includes study of macroeconomics, microeconomics, competition in the market, particular company health such as study of assets, liabilities, earnings etc. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. It primarily relies on public data, such as a company’s historical earnings and profit margins, to project future growth. in accounting and finance, Fundamental analysis is the analysis of a business's financial statements , 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. Top-Down Approach: Top down approach starts investment analysis from larg...