Finance | What is Fundamental Analysis?

Fundamental analysis is an important method used to evaluate financial assets and make investment decisions. It is used by both individual and institutional investors to gain insights into a company's/market's financial condition and future expectations. The fundamental analysis process starts with reviewing a company's financial statements, such as its balance sheet, income statement, and cash flow statement. Analysts also consider the company's management, its industry and market trends, as well as economic and political conditions that may affect its operations and financial performance.