Financial Terms / fundamental analysis

Fundamental Analysis Investing Facts

Fundamental analysis is an essential tool for investors to make informed decisions about their investments.


Value = (Earnings + Cash Flow + Dividends) / (Risk + Inflation + Other Factors)

How do I calculate the fundamental analysis?

The best way to calculate Fundamental Analysis is to examine economic and financial factors to determine the real or "fair market" value of a stock. This can be done by using tools such as Sourcetable to analyze and compare financial information such as revenue, earnings, and cash flow. The formula used to calculate Fundamental Analysis is: Value = (Earnings + Cash Flow + Dividends) / (Risk + Inflation + Other Factors). By using this formula, investors can make better-informed decisions about where to invest their money.

What is fundamental analysis?

Fundamental analysis is an investment strategy that seeks to measure the intrinsic value of a security by analyzing the economic and financial factors that affect its value.

What does a fundamental analyst study?

A fundamental analyst studies anything that can affect the value of a security, including economic indicators, industry trends, and financial statements.

Key Points

How do I calculate fundamental analysis?
Value = (Earnings + Cash Flow + Dividends) / (Risk + Inflation + Other Factors)
Assesses Intrinsic Value
Fundamental analysis is an important tool used to determine a company's actual value by assessing the intrinsic value of a stock. This type of analysis looks at the fundamental factors such as financial stability, competitive advantages, growth potential, and more to evaluate the worth of a stock.
Looks for Key Attributes
Fundamental analysis also looks at the key attributes of the company, such as its management team, customer base, product offerings, and more. This helps investors gain an understanding of the company's overall performance and make more informed decisions on whether to buy or sell a stock.

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