Fundamental Analysis
An investment approach that evaluates securities by analyzing financial statements, industry conditions, and economic factors.
Fundamental analysis involves examining a company's financial health, competitive position, management quality, and growth prospects to determine its intrinsic value. Unlike technical analysis (which studies price patterns), fundamental analysis focuses on underlying business fundamentals. Key components include analyzing income statements, balance sheets, cash flows, industry dynamics, and macroeconomic factors. Expert interviews complement fundamental analysis by providing qualitative insights into competitive dynamics, management credibility, and industry trends that may not be apparent from quantitative data alone.