#firstdealofthenewyearFateema Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as a stock, bond, or currency, by analyzing economic, financial, and qualitative factors. The goal is to determine whether an asset is overvalued or undervalued based on its financial health, market position, and external factors. For stocks, this usually involves analyzing a company’s: 1. Financial Statements – Income statement, balance sheet, and cash flow statement. These provide insight into revenue, profits, debts, assets, and liquidity. 2. Earnings and Profitability – Key metrics like earnings per share (EPS), profit margins, and return on equity (ROE). 3. Valuation Ratios – Price-to-earnings (P/E), price-to-book (P/B), and other valuation multiples. 4. Growth Prospects – Examining past growth and future potential, including market share, competitive advantages, and industry trends. 5. Management – The quality and track record of the company’s leadership team. 6. Economic Conditions – Factors like interest rates, inflation, and overall economic health that may affect the company’s performance. For other assets like bonds or currencies, fundamental analysis might focus more on macroeconomic factors (such as inflation or government policy) or the financial health of an issuer. Are you looking into fundamental analysis for a specific asset or market?