Fundamental Analysis is a method used by investors to evaluate the intrinsic value of a security by examining related economic, financial, and other qualitative and quantitative factors. This approach involves analyzing a company's financial statements, management, market position, and overall economic conditions to determine its potential for growth and profitability.
By understanding the underlying factors that drive a company's performance, investors can make informed decisions about buying or selling stocks. Key components of Fundamental Analysis include earnings, revenue, assets, and liabilities, which help assess a company's financial health and future prospects.