Fundamental Analysis

Fundamental Analysis Scientific study of the basic factors which determine a share’s value. The analyst studies the industry and the company’s sales, assets, liabilities, debt structure, earnings, products, market share; evaluates the company’s management, compares the company with its competitors, and then estimates the share’s intrinsic worth. The fundamental analysts’ tools are FINANCIAL RATIOS arrived at by studying a company’s BALANCE SHEET and PROFIT AND LOSS ACCOUNT over a number of year. More effective in fulfilling long – term growth objectives of shares, rather than their short – term price fluctuations.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress