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
- 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)