What is fundamental analysis?
As the name suggests, fundamental analysis involves study of basic information of a company based on its business and financial performance. The process is a combination of qualitative as well as quantitative information. For instance, qualitative factors include brand value, while quantitative data includes balance sheet information, and how the company is positioned compared to its peers. The analysis is useful to understand factors that could influence the price of a stock in the future such as external events and influences, as well as financial changes, and industry trends. With fundamental analysis investors can arrive at a value of the share price of the company to invest or sell their holdings.