Fundamental analysis typically refers to a method of analyzing and evaluating equities, though it may also apply to any kind of security. A whole slew of data including, but not limited to, financial statements, economics, health, management, interest rates, production, earnings, competitive advantages, competitors and many other qualitative and quantitative factors are considered. What is the company’s revenue? Is it growing? Are
they even making a profit? Are they in or paying off debt? What are their turnover rates? Does management take care of employees? All of this to determine a numerical intrinsic value for the security that can be compared with its current price so as to determine whether or not it is overvalued or undervalued. Fundamental Analysis is often (mistakenly) directly contrasted with Technical Analysis
