Fundamentals Analysis (Noun)
Meaning
(stock exchange) the use of fundamentals as an investment strategy.
Classification
Nouns denoting acts or actions.
Examples
- Using fundamentals analysis, investors examine a company's financial statements, management team, and competitive position to estimate its future stock price.
- As a value investor, Sarah relied on fundamentals analysis to identify undervalued companies with strong financial health.
- In the stock exchange, many investors apply fundamentals analysis to predict a company's potential for long-term growth and dividend payments.
- Before making an investment decision, David conducts thorough fundamentals analysis, reviewing factors such as revenue growth, debt-to-equity ratio, and profit margins.
- Through fundamentals analysis, market participants assess the intrinsic value of a company and compare it to its current market price to make informed buy or sell decisions.