Fundamental Analysis

Fundamental analysis is a method of measuring a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.

Explanation

This analysis method looks at everything from the overall economy and industry conditions to the financial condition and management of companies.

Practical Example of Fundamental Analysis: 

An investor analyzes a company's financial statements, industry position, and economic environment to determine if the stock is undervalued or overvalued.

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