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What is Fundamental Analysis?

Fundamental analysis is the process of evaluating a company, industry, or asset by examining financial, economic, and business factors that may affect its value.

Fundamental analysts review items such as:

  • Revenue
  • Earnings
  • Cash flow
  • Debt
  • Competitive position
  • Economic conditions

The goal is to determine whether an asset is undervalued, fairly valued, or overvalued.