Investor Glossary-fundamental analysisInvestor Glossary-fundamental analysisInvestor Glossary-fundamental analysisInvestor Glossary-fundamental analysisInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fundamental Analysis

The HTML to link to this page
 

Fundamental analysis attempts to find the actual value of a stock -- ie, its ability to generate future cash flows -- to make investment decisions. Fundamental analysis thus focuses on a company's financial results. Specifically, fundamental analysis emphasizes forecasts of company's earnings and revenue growth rates, valuation ratios like price to earnings, and financial ratios like profit margins. Fundamental analysis also looks to conditions in the industry sector(s) in which the company operates and the broader economic outlook. Fundamental analysis stands in stark contrast to technical analysis, which ignores company fundamentals and looks only at the movement of stock prices and market activity. Both fundamental analysis and technical analysis have their doctrinaire adherents who consider the opposing approach useless. Most market pros, however, recognize that both fundamental analysis and technical analysis have their role in forecasting stock prices.



Rate this fundamental analysis definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, per diem, APR, open position, ex-dividend date, current ratio, VIX, Zero Cost Collar, reverse mortgage, option premium, LIBOR, 1031 exchange, risk management, phantom income, cancelled check, FICO score, command economy, wholly-owned subsidiary, dividends payable, EBITDA, stock market close, balance sheet, deferred revenue, minority interest, irrevocable trust, deferred tax, required rate of return, 144a, FTSE, in escrow, limit order, stock split, implied volatility, debt service coverage, annual return, labor relations, quality assurance, ex-dividend, average price per share, inflation, 401a, 1035 exchange, class C shares, diluted share, margin rate, Key Rate Duration, retained earnings, liquidity ratio, covered put


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use