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INVESTING FUNDAMENTAL ANALYSIS

Fundamental Analysis: Principles, Types,

and How to Use It
By TROY SEGAL Updated June 21, 2024

Reviewed by MICHAEL J BOYLE

Fact checked by KATRINA MUNICHIELLO

Part of the Series

How to Value a Company

What Is Fundamental Analysis?

Fundamental analysis involves examining a company's financial statements
and broader economic indicators to uncover a security's intrinsic value. The
result of such an analysis should give you the investment's true worth based on
a company's financial health, the market, and economic conditions. Investors
perform fundamental analysis to gauge whether or not to invest in a company
based on it's current and projected worth.

KEY TAKEAWAYS
Fundamental analysis is a method of determining a stock's intrinsic
value.
Fundamental analysts search for stocks trading at prices higher or
lower than their real value.
If the fair market value exceeds the market price, the stock is deemed
undervalued, and a buy recommendation is given.
If the fair market value is lower than the market price, the stock is
overvalued, and the recommendation might be not to buy or to sell if
the stock is held.
 In contrast, technical analysts favor studying the historical price trends
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of the stock to predict short-term future trends.

Fundamental Analysis
Investopedia / Paige McLaughlin

Understanding Fundamental Analysis

When performing fundamental analysis, you study the company's revenue
growth, profitability, and competitive advantages within its industry. You also
assess macroeconomic factors such as the overall state of the economy and the
demand for the company's products or services. It also takes into account the
effectiveness of the company's management team. A skilled and experienced
leadership team can navigate challenges and seize opportunities, driving the
company's growth and increasing its value.

This approach to the market often allows you to see behind investor sentiment
and company marketing to determine whether the company has the potential
for long-term success. With fundamental analysis, you can then gauge if the
security's market price is over- or undervalued.

Fundamental analysis typically starts by analyzing a company's financial

statements, including the income statement, balance sheet, and statement of
cash flows. The information in these materials can be used to calculate and
assess a company's financial health and intrinsic value. Key ratios derived from
these financial statements include the price-to-earnings (P/E) ratio, earnings per
share (EPS), return on equity (ROE), and debt-to-equity (D/E) ratio, among
others. Fundamental analysts use measures like these to determine whether a
stock is undervalued or overvalued relative to its market price and competitors.
[1]
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In addition, fundamental analysis frequently involves looking at gross domestic

product, inflation, unemployment rates, industry or sector trends, and the
company's competition. Fundamental analysis thus takes how a company
should perform, not just in the market, but as a producer of goods and services.
This requires looking at the overall economy, sector performance, and the
company's position within the industry to estimate its value and forecast future
performance. This approach not only considers economic and financial data
but also often includes reviewing its business model, management
effectiveness, brand awareness, and potential for growth and profitability.

Ultimately, fundamental analysis aims to give you a number, a value, for the
company you can use when buying, holding, or selling stocks. It requires a
comprehensive understanding of financial statements and a strategic view of
how external factors could impact the company's future earnings and market
position.

Why Is Fundamental Analysis Important?

Fundamentals allow investors to look beyond short-term price fluctuations and
focus on the underlying factors that drive a company's operations and long-
term performance.

The main benefit of fundamental analysis is to help quantify the value of a

company and its shares. Financial statements offer hard data that reveal
insights into a company's profitability, liquidity, and overall financial stability.
This information, along with an assessment of the company's management
team, competitive advantages, and industry trends, furnishes a picture of the
company's fair or target value. With this knowledge, investors can make more
informed decisions about buying, holding, or selling a particular stock.

Fundamental analysis can also help investors identify undervalued companies.

By considering a company's sales growth, market share, and product pipeline,
investors can gauge its ability to increase future profits and grow shareholder
value. By investing in companies with solid fundamentals and promising
growth prospects, investors can benefit from long-term trends and capitalize on
emerging prospects. Value investors, in particular, look for undervalued shares
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relative to their fundamental potential. [2]

Finally, fundamental analysis can help you spot red flags and overvalued
investments. By researching a company's financial health and market position,
investors can more easily avoid stocks that may be more likely to underperform
or experience significant downturns. This is especially important during
economic uncertainty or market volatility when a company's underlying
strength can be the difference between weathering the storm and being pushed
out of the market altogether.

Where to Find Fundamentals for a Company

Some of the most common and reliable sources for the fundamentals of a
company include the following:

Company filings: Public companies are required to file regular reports with
the Securities and Exchange Commission (SEC), such as Form 10-K (annual
report), Form 10-Q (quarterly report), and Form 8-K (current events report).
These filings contain detailed financial statements, management
discussions and analyses, and other important information about the
company. You can access these filings for free on the SEC's EDGAR database.
Company website: Most publicly traded companies have an investor
relations section that provides financial statements, earnings releases,
investor presentations, and other relevant information for shareholders and
potential investors. Transcripts of earnings reports can be particularly
helpful since company leads typically find it necessary to address company
soft spots for journalists.
Financial platforms: Yahoo! Finance, Google Finance, and MarketWatch,
among others, provide financial news, analysis, and fundamental data on
publicly traded companies, including financial statements, key ratios, and
analyst ratings.
Broker research reports: Many brokerage firms supply research reports on
companies they and their affiliates cover, often with detailed fundamental
analysis and investment recommendations.
Financial data providers: Subscription-based financial data providers such
as Bloomberg, FactSet, and Morningstar offer extensive fundamental data
and analysis on companies, industries, and markets. Subscriptions are often
 pricey, so they are more typically used by professional investors and
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analysts.
Industry trade journals: Trade publications covering specific industries can
provide valuable insights on industry trends, competitive dynamics, and
company-specific developments that inform your fundamental analysis.

Remember, when conducting fundamental analysis, it's essential to use several

sources to get a well-rounded view of a company's financial prospects and to be
aware of any potential biases or conflicts of interest in the information you're
receiving.

FAST FACT
Fundamental analysis is used most often for stocks, but it can be
useful for evaluating any security, from a bond to a derivative. If you
consider the fundamentals, from the broader economy to the
company details, you are doing a fundamental analysis.

How to Read a Company's Annual Report

Reading a company's annual report is an essential part of fundamental analysis.
Here's a step-by-step guide on how to read and analyze an annual report:

1. Start with the CEO's letter to shareholders: This section gives an overview
of the company's performance, key developments, and outlook from the
perspective of top management. Pay attention to the tone and content of
the letter, as it can give insights into the company's strategy, challenges,
and prospects.
2. Review the business description: This section describes the company's
main products or services, target markets, competitive advantages, and key
risks. It can help you understand the company's business model and the
factors that drive its success.
3. Analyze the management's discussion and analysis (MD&A): The MD&A
provides a detailed discussion of the company's financial performance,
including revenue and expense trends, cash flows, and key financial ratios.
It also has management's perspective on the factors that affect the
company's performance and outlook for the future.
 4. Examine the financial statements: The annual report has the company's
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audited financial statements, including the income statement, balance
sheet, and statement of cash flows. Review these carefully while looking for
trends in revenue, expenses, profits, assets, liabilities, and cash flows. From
there, you can compute the critical financial ratios.
5. Read the notes to the financial statements: The notes (or footnotes)
provide additional details and explanations about the company's
accounting policies, significant transactions, and other important
information that may not be clear from the financial statements alone.
6. Review the auditor's report: This provides an independent opinion on
whether the financial statements fairly present the company's financial
position and performance following generally accepted accounting
principles. Look for any qualified opinions or disclaimers that may indicate
potential issues.
7. Analyze the company's corporate governance: The annual report often has
information on the company's board of directors, executive compensation,
and other corporate governance matters. Consider whether the company's
governance practices align with the interests of shareholders and whether
there are any red flags, such as conflicts of interest or excessive
compensation.
8. Look for additional disclosures: The annual report may include additional
disclosures about legal proceedings, regulatory issues, or environmental,
social, and governance (ESG) factors that could impact the company's
performance and reputation.

A Closer Look at Financial Statements

The information in financial statements is among the most valuable about a
company's financial health and performance. Here's a breakdown of what you
can learn from each one:

Income Statement: This shows how much money a company is making

(revenue), how much they're spending (expenses), and then what's left over
(profit or loss). By looking at trends in revenue and expenses over time, you
can get a sense of whether the company is growing or struggling. You can
also calculate important ratios like the company's profit margin, which tells
you how much of each dollar in sales the company gets to keep as profit.
 Balance Sheet: This gives you a snapshot of what a company owns (assets),
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what it owes (liabilities), and what is left over (shareholders' equity). This
can help you assess a company's financial stability and liquidity. For
example, if a company has a lot more assets than liabilities, that's generally
a good sign. You can also look at how much debt the company has relative to
its equity to understand its financial leverage and risk.
Statement of Cash Flows: This shows how much cash is coming in and
going out of the company over a given period. It's broken down into three
main categories: cash from operations (the money generated by the
company's core business activities), cash from investing (the money spent or
earned from investments not related to the core business), and cash from
financing (the money raised or paid out and used to fund the business). By
looking at a company's cash flows, you can better understand its ability to
generate cash, pay its bills, and invest in growth.

The cash flow statement is crucial because it's harder for a business to
manipulate its cash situation. An aggressive accountant can do plenty of things
to manipulate earnings, for example, but it's tough to fake cash in the bank. For
this reason, some investors use the cash flow statement as a more conservative
measure of a company's performance.

FAST FACT
A "balance sheet" gets its name because the three sections it
contains—assets, liabilities, and shareholders' equity—must
balance out using this formula:

Assets = Liabilities + Shareholders' Equity

Quantitative and Qualitative Fundamental Analysis

The problem with defining the "fundamentals" is that they can cover anything
related to a company's economic well-being. They can include numbers like
revenue and profit, but they can also include anything from a company's
market share to the quality of its management. Generally, these are all grouped
into two categories: quantitative and qualitative:
 Quantitative: information that can be shown using numbers, figures, ratios,
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or formulas
Qualitative: rather than a quantity of something, it is its quality, standard, or
nature

In this context, quantitative fundamentals are hard numbers, the measurable

characteristics of a business. The most significant source of quantitative data is
financial statements. The qualitative fundamentals are less tangible. They
might include the quality of a company's key executives, brand-name
recognition, patents, and proprietary technology. Neither qualitative nor
quantitative analysis is inherently better. Many analysts consider them together.

FAST FACT
Fundamental analysis relies on using financial ratios drawn from
data on corporate financial statements to make inferences about a
company's value and prospects.

Qualitative Fundamentals to Consider

There are certain qualitative fundamentals that analysts should always
consider when analyzing a company. These include the following:

The Business Model: What exactly does the company do? This isn't always
straightforward. If a company's business model is based on selling fast-food
chicken, is it making its money that way? Or is it coasting on royalty and
franchise fees?
Competitive Advantage: A company's long-term success is primarily driven
by its ability to maintain its competitive advantage. Competitive advantages,
such as Coca-Cola Co.'s (KO) brand name and Microsoft Corporation's
(MSFT) long domination of the personal computer operating system, create
a moat around a business, allowing it to keep competitors at bay and enjoy
growth and profits.
Management Team: Some think management is the most important
criterion for investing in a company. This makes sense: Even the best
business model is doomed if the company's leaders fail to execute the plan
properly. While it's hard for retail investors to meet and truly evaluate
managers, you can look at the corporate website and check the resumes of
 the top brass and the board members. How well did they do in previous
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jobs? Have they been unloading a lot of their stock shares lately?
Corporate Governance and Board Structure: These are provided by the
policies within an organization indicating the relationships and
responsibilities among management, directors, and stakeholders. These
policies are defined and determined in the company charter, its bylaws, and
corporate laws and regulations. You want to do business with a company
that is run ethically, fairly, transparently, and efficiently. Note whether
management respects shareholder rights and shareholder interests. Ensure
their communications to shareholders are transparent and understandable.
If you don't get it, if there are major issues you know surround the company
and they aren't addressed, it's not a sign that they have good answers for
you.
Industry Trends: It's also important to consider a company's industry: its
customer base, market share among firms, industrywide growth,
competition, regulation, and business cycles. Learning how the industry
works will give an investor a deeper understanding of a company's financial
health.
Stakeholder Satisfaction: Employees, managers, customers, suppliers,
investors, and other stakeholders should all have positive views on the
company and its prospects. Without that, a company's brand equity and
image can suffer, which can lead to fewer sales, lower profits, and flagging
share prices.

Quantitative Fundamentals to Consider: Financial Ratios

Financial statements are how a company discloses information about its
financial performance. Here are some of the most important financial ratios
with their formulas:

Key Financial Ratios

Category Ratio Formula

Profitability Gross profit (Revenue - Cost of

margin Goods Sold) / Revenue

Higher margins and returns generally Operating Operating Income /

indicate a more profitable and efficient profit margin Revenue
business.
Key Financial Ratios TRADE

Category Ratio Formula

Net profit Net Income / Revenue

Margin

Return on Net Income / Average

assets (ROA) Total Assets

Return on Net Income / Average

equity (ROE) Shareholders' Equity

Liquidity Current ratio Current Assets /

Current Liabilities

A higher ratio suggests that the Quick ratio (Cash + Marketable

company has enough liquidity to cover Securities + Accounts
its near-term liabilities. Receivable) / Current
Liabilities

Solvency Debt-to- Total Liabilities / Total

equity ratio Shareholders' Equity

These ratios measure a company's Debt-to- Total Liabilities / Total

ability to meet its long-term debt assets ratio Assets
obligations. Lower debt ratios and
higher interest coverage ratios generally
indicate a more financially stable
company.

Interest Operating Income /

coverage Interest Expense
ratio

Efficiency Asset Revenue / Average

turnover ratio Total Assets

These ratios measure how effectively a Inventory Cost of Goods Sold /

company manages its assets to generate turnover ratio Average Inventory
sales. Higher turnover ratios suggest
that the company is using its assets
more efficiently to generate revenue.

Receivables Revenue / Average

turnover ratio Accounts Receivable
Key Financial Ratios TRADE

Category Ratio Formula

Valuation P/E Market Price per Share

/ Earnings per Share

Lower ratios may indicate that the stock Price-to-book Market Price per Share
is undervalued, while higher ratios may (P/B) ratio / Book Value per Share
suggest that it is overvalued.

Price-to-sales Market Price per Share

(P/S) ratio / Revenue per Share

Dividend Annual Dividends per

yield Share / Market Price
per Share

Fundamental Analysis vs. Technical Analysis

Fundamental analysis contrasts starkly with technical analysis, which attempts
to forecast prices by analyzing historical market data such as price and volume.
Technical analysis uses price trends and action, often plotted on charts, to
create indicators and identify patterns. Some indicators develop patterns that
have names resembling their shapes, such as the "head and shoulders" pattern.

A major distinction is where "value" comes from. For technical analysts, the
market sets prices, and hence, the changes there give a company its value. For
fundamental analysts, there is an intrinsic value that the market can often miss.

Fundamental vs. Technical Analysis

Fundamental Analysis
• Estimates the intrinsic value of a company from its operations
• Considers a company's financial statements and qualitative factors
• Longer-term focus (months/years)
• Best for buy-and hold investing

Technical Analysis
• Looks at price and market trends to uncover market psychology
• Considers historical prices and chart patterns
 • Shorter-term focus (days/weeks)
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• Best for short-term or swing trading

Limitations of Fundamental Analysis

Though fundamental analysis can provide investors with insights into the future
of a company, it does come with some downsides. Keep these items in mind
when performing fundamental analysis:

It's Time-Consuming: Fundamental analysis involves a detailed examination

of financial statements, economic data, industry reports, and company-
specific factors. This process requires collecting extensive data, performing
complex calculations, and interpreting various financial metrics - which all
times time (which leads into the next downside....).
It's A Lagging Indicator: In addition to being a slow process, fundamental
analysis often acts as a lagging indicator because it relies on financial data
that reflects past performance. By the time changes in a company’s
fundamentals become apparent in its financial statements, the stock price
might have already adjusted.
Relies on Historical Data: Similarly, fundamental analysis is based largely on
historical financial information. While this data provides a basis for
estimating future performance, it may not fully capture future risks or
opportunities, as past performance is not an indicator of what's to come in
the future.
Subject to Accounting Practices: The accuracy of fundamental analysis
depends on the integrity and transparency of a company’s financial
statements. Keep in mind that things like management estimates,
depreciation, or other GAAP-compliant requirements can (perhaps
improperly) impact the fundamental analysis.
Difficult to Value Intangibles: Intangible assets like patents, trademarks,
brand reputation, and human capital are increasingly important in today’s
economy. However, these assets are challenging to quantify and may not be
fully reflected in a company’s financial statements. Consider how some
investors would have believed in Apple simply because of Steve Jobs; that
notion is not captured in fundamental analysis.
Economic Assumptions: Fundamental analysis often involves assumptions
about future economic conditions such as interest rates, inflation, and
economic growth. Again, these are always changing and may not materialize
as expected.
 Overlooked Short-Term Opportunities: Fundamental analysis is geared
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towards long-term investment decisions, focusing on a company’s intrinsic
value and potential for growth over time. This long-term focus might cause
investors to miss short-term trading opportunities that technical analysis
can identify such as price patterns, volume spikes, or momentum indicators.

Example of Fundamental Analysis

Let's analyze a hypothetical company called ABC Inc. using fundamental
analysis. We'll examine its financial statements and calculate key ratios to
assess its financial health and performance.

First, let's look at some data from ABC Inc.'s financial statements for the
previous fiscal year:

ABC Income Statement & Balance Sheet

Income Statement ($ millions) . Balance Sheet ($ millions)

Revenue $1,000 . Assets

Cost of Goods Sold $600 . Current Assets $750

Gross Profit $400 . Cash $200

Operating Expenses $200 . Marketable Securities $250

Operating Income $200 . Accounts Receivable $300

Net Income $150 . Non-Current Assets $750

. Total Assets $1,500

. ------------------

. Liabilities

. Current Liabilities $250

. Non-Current 250
Liabilities

. Total Liabilities $500

.
ABC Income Statement & Balance Sheet TRADE

Income Statement ($ millions) . Balance Sheet ($ millions)

. Shareholder Equity $1,000

ABC Statement of Cash Flows & Stock Information

Cash Flows from: ($ millions) . Stock Information

Operations $250 . # Shares Outstanding 100 million

Investments $100 . Stock Price $25.00

Financing $150 .

Now, let's calculate some key ratios:

Profitability Ratios:

Gross profit margin = ($1,000 - $600) / $1,000 = 40%

Operating profit margin = $200 / $1,000 = 20%
Net profit margin = $150 / $1,000 = 15%
Return on assets (ROA) = $150 / $1,500 = 10%
Return on equity (ROE) = $150 / $1,000 = 15%

ABC Inc.'s profitability ratios suggest that the company is generating healthy
profits from its operations. Its gross margin is 40%, operating margin is 20%,
and net margin is 15%. Its ROA and ROE of 10% and 15%, respectively, indicate
that the company is generating solid returns on its assets and equity.

Liquidity Ratios:

Current ratio = $750 / $250 = 3.00

Quick ratio = ($200 + $150 + $200) / $250 = 2.20

Assuming ABC Inc.'s current assets are $750 million, with $200 million in cash,
$150 million in marketable securities, and $200 million in accounts receivable,
and its current liabilities are $250 million, the company's liquidity ratios are
strong. A current ratio of 3.0 and a quick ratio of 2.2 suggest that ABC Inc. has
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ample liquidity to cover its short-term obligations.

Solvency Ratios:

Debt-to-equity ratio = $500 / $1,000 = 0.50

Debt-to-assets ratio = $500 / $1,500 = 0.33

ABC Inc.'s solvency ratios indicate that the company has a manageable level of
debt relative to its equity and assets. A debt-to-equity ratio of 0.5 and a debt-to-
assets ratio of 0.33 suggest that the company is not overly leveraged and has
the financial flexibility to meet its long-term obligations.

Valuation Ratios (Assuming ABC Inc. has 100 million shares outstanding and its
stock price is $25 per share):

Price-to-earnings (P/E) Ratio = $25 / ($150 / 100) = 16.67

Price-to-book (P/B) Ratio = $25 / ($1,000 / 100) = 2.50
Price-to-sales (P/S) Ratio = $25 / ($1,000 / 100) = 2.50

ABC Inc.'s valuation ratios suggest that the company's stock is trading at a
reasonable valuation relative to its earnings, book value, and sales. A P/E ratio
of 16.67 aligns with the broader market, while P/B and P/S ratios of 2.5 indicate
that the stock is not overly expensive relative to the company's assets and
revenue.

In addition to these quantitative measures, we can also consider certain

qualitative fundamentals:

Competitive Advantages:

Has strong brand recognition in its industry and high customer loyalty
Proprietary technology that differentiates its products from
competitors
Efficient supply chain and distribution network, enabling faster
delivery and lower costs

Management Quality:
 It has an experienced management team with a proven track record of
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success.
The CEO has been with the company for 15 years and has led the
company through several periods of growth.
Management has demonstrated a commitment to creating new goods
and services and has strategic investments in research and
development.

Industry Trends:

The industry in which ABC Inc. operates is growing at a steady rate of

5% per year.
There's increasing demand for eco-friendly and sustainable products,
which aligns with ABC Inc.'s product offerings.
The regulatory environment is becoming more favorable for the
company's products.

Growth Prospects:

ABC Inc. has a robust pipeline of new products set to launch in the
next 12-18 months.
The company has been expanding into new geographic markets and
plans to enter two new countries next year.
Recent acquisitions have provided opportunities for synergies and
increased market share.

Corporate Governance:

ABC Inc. has a diverse and independent board of directors.

The company has a strong track record of transparency and timely
financial reporting.
Executive compensation is aligned with long-term shareholder
interests.

ESG Factors:

ABC Inc. has set ambitious targets for reducing its carbon footprint
and increasing its use of renewable energy.
 The company is committed to diversity, equity, and inclusion, with
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programs in place to promote a diverse workforce.
ABC Inc. engages with local communities and supports various
philanthropic initiatives.

Based on this hypothetical fundamental analysis, ABC Inc. appears to be a

financially healthy and potentially attractive investment. However, it's
important to remember that this is just a simplified example. In practice,
investors would need to conduct a more thorough analysis, considering the
company's competitive position, industry trends, management quality, and
growth prospects, before making an investment decision.

What Is Fundamental Analysis and Its Objective?

Fundamental analysis uses publicly available financial information and reports
to determine whether a stock and the issuing company are valued correctly by
the market.

What Are the 3 Layers of Fundamental Analysis?

When conducting an analysis, you can be top-down and start with economic
analysis, then analyze the industry, then the company. Or, you can be bottom-
up and work in the reverse order.

What Are the Tools for Fundamental Analysis?

Analysts use many tools. Some examples are financial reports, ratios from the
reports, spreadsheets, charts, graphs, infographics, government agency reports
on industries and the economy, and market reports.

How Does Fundamental Analysis Differ From Technical

Analysis?
Fundamental analysis focuses on evaluating a security's intrinsic value based
on financial and economic factors, while technical analysis studies price
movements and trading volumes to identify patterns and predict future price
movements.

Why Is Earnings Per Share (EPS) Important in Fundamental

Analysis?
EPS indicates a company’s profitability on a per-share basis, helping investors
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determine how much profit a company generates for each share of its stock. It is
a critical metric for assessing company performance and valuing stocks.
The Bottom Line
Fundamental analysis is used to value a company and determine whether a
stock is over- or undervalued by the market. It considers the economic, market,
sector-specific, and financial performance.

Financial ratios generated from financial reports and government industry and
economic reports are used to assess a company. Not every analyst uses the
same tools or views stocks similarly—you might determine a stock is valued
differently than another analyst. What's important is that the stock you analyze
meets your criteria for value and that your analysis creates actionable
information.
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Part of the Series

How to Value a Company

Introduction to Company Valuation

Financial Statements

Financial Ratios

Fundamental Analysis Basics

1 Fundamental Analysis
CURRENT ARTICLE

2 Absolute Value
NEXT UP

3 Relative Valuation

4 Intrinsic Value of a Stock

5 Intrinsic Value vs. Current Market Value

6 Equity Valuation: The Comparables Approach

7 4 Basic Elements of Stock Value

8 How to Become Your Own Stock Analyst

9 Due Diligence in 10 Easy Steps

 10 Determining the Value of a Preferred Stock TRADE

11 Qualitative Analysis

Fundamental Analysis Tools and Methods

Valuing Non-Public Companies

Related Terms
What Are Fundamentals? Types, Common Analysis Ratios,
and Example
Fundamentals consist of the basic qualitative and quantitative information that underlies
a company or other organization's financial and economic position. more

Financial Performance: Definition, How it Works, and

Example
Financial performance measures how a firm uses assets from operations to generate
revenue. Read how to analyze financial performance before investing. more

Balance Sheet: Explanation, Components, and Examples

A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholder equity at a specific point in time. more

Horizontal Analysis: What It Is vs. Vertical Analysis

Horizontal analysis is used in financial statement analysis to compare historical data,
such as ratios or line items, over a number of accounting periods. more

What Is Valuation? How It Works and Methods Used

A valuation attempts to estimate the current worth of an asset or company. Several
methods and techniques can be used and each can produce a different value. more

Investment Analysis: Definition, Types, and Importance

Investment analysis is researching and evaluating a stock or industry to determine how it
is likely to perform and whether it suits a given investor. more

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