Introduction to Fundamental Analysis
What is Fundamental Analysis and why should you learn to analyze companies
Fundamental analysis is a way of evaluating a company to see if it's a good investment. It looks at the company's financial information like its revenue, profits, debt, and other important factors to determine if it's a good investment opportunity.
For example, let's say you want to buy a share of stock in a company called ABC Corp. You can use fundamental analysis to evaluate if it's a good investment opportunity. You would look at the company's financial statements to see how much money they're making, how much debt they have, and how much money they're spending on things like research and development.
If you see that ABC Corp is making a lot of money and has low debt, that's a good sign that it's a good investment opportunity. On the other hand, if the company is losing money and has a lot of debt, it might not be a good investment opportunity.
Fundamental analysis can also look at other factors that could impact the company's future success, like changes in the market, new competition, or changes in regulations. By using fundamental analysis, you can make a more informed decision about whether or not to invest in a company.