Fundamental analysis: articles and analysis

Fundamental analysis evaluates the economic and financial factors that may influence an asset's value. For stocks, this includes the business model, financial statements, earnings, cash flow, debt and valuation. For currencies and commodities, analysts may consider interest rates, inflation, supply, demand and central-bank policy. This category connects company research with the wider macroeconomic environment.

How to perform fundamental analysis

Research starts with reliable data and comparisons across several periods. It is not enough to know that profit increased; an analyst should understand why it changed, whether the improvement is sustainable and how much optimism is already priced in. The guides explain income statements, balance sheets, cash-flow statements and valuation multiples without treating any metric as an automatic buy or sell signal.

• revenue, margins, earnings and free cash flow;
• debt, liquidity and balance-sheet quality;
• relative valuation and scenario-based estimates;
• interest rates, inflation and the economic cycle;
• catalysts, assumptions and material risks.

Fundamental value and the market price

A strong business can still be overvalued, while poor news may already be reflected in the price. Fundamental conclusions can therefore be compared with technical analysis and protected through risk management. Practical examples appear in the company overview category, and the core macroeconomic concepts are explained in economic basics.