Ever wondered how you actually analyze companies? 🤔
While there’s no exact scientific method, investors do their best with fundamental analysis ✍️
Fundamental analysis is a method of evaluating the intrinsic value of a company 🤑
Intrinsic value = a company’s true, inherit value regardless of hype or current price 💡
Using the intrinsic value, investors seek to determine whether a company is undervalued or overvalued 💸
By doing so, investors can make informed decisions about buying, selling, or holding a company's stock 📊
Fundamental analysis involves examining a company's financial and economic factors, such as revenue, earnings, assets, and liabilities 📈
Fundamental analysis can also involve analyzing industry trends, competitors, and economic factors that may affect a company's performance 📉
By using fundamental analysis, investors can also identify potential risks and investment opportunities associated with a particular company or industry 🤔
To leave you with an analogy, fundamental analysis is like a doctor's check-up for a company 😷
How could that be true? Well. . .
Just as a doctor examines a patient's health to determine their overall well-being, fundamental analysis examines a company's financial health to determine its intrinsic value 💉
Now that we have a brief overview of fundamental analysis, along with a silly analogy, let’s test your knowledge so that we can start DOING fundamental analysis 🥳
