Fundamental Analysis is a method of evaluating the intrinsic value of an asset, analyzing the factors that could influence the price in the future and taking into account external events. One of the most important principles is price sensitivity (or resistance), which can be measured by technical analysis. The final analysis is not only about prediction but also about risk management: it helps investors to avoid common mistakes, find profitable opportunities and finally decide whether to buy or sell a particular security at any given time.Fundamental analysis is often used to determine the intrinsic value of a company and its shares. This form of analysis is based on external events and market trends, as well as financial statements and industry statistics. A fundamental analysis also gives investors a sense of what they can expect from their investment in the future, by analyzing various factors such as revenue growth and profit margins.The fundamental analysis is the most popular financial analysis among the investors. This method is based on certain facts and events to evaluate the asset's value in terms of future price. One can find that fundamentals are important because they provide a good base for determining an asset's worthiness in its present market conditions.Fundamental analysis has been around since the early days of Wall Street. Back then, it was a way for investors to find great value in stocks that had hit a wall. Over time, it's been used for dating, investing, politics and everything else in between. Nowadays, many people choose to implement fundamental analysis into their day-to-day lives via apps and systems like Google Analytics.
