Fundamental Analysis
| Fundamental analysis is a research approach that relies on analyzing an asset’s value through various indicators. This approach is often used by investors to determine whether an asset is undervalued or overvalued. There are a number of different indicators that can be used in fundamental analysis. Some of the most common indicators include earnings per share, price to earnings ratio, and dividend yield. Earnings per share is a measure of a company’s profitability. It is calculated by dividing a company’s earnings by the number of shares outstanding. The price to earnings ratio is a measure of a company’s valuation. It is calculated by dividing a company’s stock price by its earnings per share. The dividend yield is a measure of a company’s dividend payout. It is calculated by dividing a company’s annual dividend by its stock price. Fundamental analysis can be used to valuate a wide variety of assets, including stocks, bonds, and real estate. This approach is often used by investors to determine whether an asset is undervalued or overvalued. |
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