What is Fundamental Analysis?
Evaluating a stock based on a company's financial statements and business prospects.
In Depth
Fundamental analysis examines earnings, revenue growth, margins, balance sheet, cash flow, competitive position, and management quality to estimate intrinsic value. It contrasts with technical analysis, which focuses on price and volume patterns. GPT Fundamental Sage relies on this approach.
Example
Concluding that a stock is undervalued because its free cash flow yield exceeds the 10-year Treasury by 4% is a fundamental judgment.