Fundamental analysis focuses on evaluating a company’s financial health and true value. It involves studying financial statements, key ratios like P/E and ROE, and overall industry performance. This approach helps investors choose strong companies for long-term growth rather than short-term market movements.

Study Topic

1. Company financials:

• Balance Sheet
• Profit & Loss Statement

2. Key ratios:

• P/E Ratio
• ROE
• Debt to Equity

3. Industry analysis

4. Economic factors (inflation, interest rates)