Fundamental
Analysis
The study of a security’s underlying financial strength is known as fundamental analysis.
Fundamental analysis is a tool that investors use to determine which stocks are undervalued and which are overvalued.
In order to establish whether a firm is worth while investing in, fundamental analysis examines its business model, financials, profit and loss statements, earnings, cash flow, level of debt, stock price, and so many things.
Identification of cheap and overvalued stocks is the goal of fundamental analysis.
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Fundamental analysis is a tool that investors use to determine which stocks are undervalued and which are overvalued
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