Fundamental analysis is a method of evaluating a company’s value. It analyzes the company’s fundamentals based on its financial data, operating model, industry, and overall economic environment to determine the company’s intrinsic value and compare it with the current stock price to provide investors with appropriate investment advice. Fundamental analysis is an important foundation for value investing .
For example, when a company’s intrinsic value is higher than its stock price, the stock price is undervalued and can be bought. Conversely, if the company’s intrinsic value is lower than the current stock price, the stock price is overvalued and should be sold.
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When analyzing company fundamentals, you often need to analyze the company’s financial statements, management discussion and analysis reports, industry research, competitor analysis, market trends, etc. Fundamental analysis is widely used in investment decisions, especially value investing.
Therefore, the fundamental analysis of a company needs to combine multiple data, and professionals need to go through a long period of study before they can accurately find the required data from the financial statements and analyze and summarize the macroeconomic environment to obtain the most reasonable analysis results for the target company.
When conducting a fundamental analysis of a company, you can use a bottom-up or top-down approach, combining qualitative analysis with quantitative analysis to give a more fair analysis result.
In particular, TradeUP Securities (the US brand of Tiger Brokers) provides detailed financial data of listed companies, as well as news about individual stocks and the entire macro-economy, accurately grasps the fundamentals, and helps your investment. Currently, if you open an account with TradeUP, you can get a chance to draw free US stocks, with the maximum possible value of up to $1,570 in US stocks.
You can read the article “TradeUP Securities Account Opening Detailed Explanation” to learn the latest account opening reward information.
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