Introduction To Fundamental Analysis
AAA
  1. Fundamental Analysis: Introduction
  2. Fundamental Analysis: What Is It?
  3. Fundamental Analysis: Qualitative Factors - The Company
  4. Fundamental Analysis: Qualitative Factors - The Industry
  5. Fundamental Analysis: Introduction to Financial Statements
  6. Fundamental Analysis: Other Important Sections Found in Financial Filings
  7. Fundamental Analysis: The Income Statement
  8. Fundamental Analysis: The Balance Sheet
  9. Fundamental Analysis: The Cash Flow Statement
  10. Fundamental Analysis: A Brief Introduction To Valuation
  11. Fundamental Analysis: Conclusion
Fundamental Analysis: Introduction

Fundamental Analysis: Introduction


By Ben McClure

So, you want be a stock analyst? Perhaps not, but since you're reading this we'll assume that you at least want to understand stocks. Whether it's your burning desire to be a hotshot analyst on Wall Street or you just like to be hands-on with your own portfolio, you've come to the right spot.

Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis.Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.

Watch: Fundamental Analysis?
The goal of this tutorial is to provide a foundation for understanding fundamental analysis. It's geared primarily at new investors who don't know a balance sheet from an income statement.While you may not be a "stock-picker extraordinaire" by the end of this tutorial, you will have a much more solid grasp of the language and concepts behind security analysis and be able to use this to further your knowledge in other areas without feeling totally lost.

The biggest part of fundamental analysis involves delving into the financial statements. Also known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities and all the other financial aspects of a company. Fundamental analysts look at this information to gain insight on a company's future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, cash flow statement and how they all fit together.

But there is more than just number crunching when it comes to analyzing a company. This is where qualitative analysis comes in - the breakdown of all the intangible, difficult-to-measure aspects of a company. Finally, we'll wrap up the tutorial with an intro on valuation and point you in the direction of additional tutorials you might be interested in.

(Also, although it's not required, you might find it helpful to read our Investing 101 tutorial, as well as our tutorial on Stock Basics, before starting.)

Ready? Let's dive into things with our first section, What Is It?

Fundamental Analysis: What Is It?

  1. Fundamental Analysis: Introduction
  2. Fundamental Analysis: What Is It?
  3. Fundamental Analysis: Qualitative Factors - The Company
  4. Fundamental Analysis: Qualitative Factors - The Industry
  5. Fundamental Analysis: Introduction to Financial Statements
  6. Fundamental Analysis: Other Important Sections Found in Financial Filings
  7. Fundamental Analysis: The Income Statement
  8. Fundamental Analysis: The Balance Sheet
  9. Fundamental Analysis: The Cash Flow Statement
  10. Fundamental Analysis: A Brief Introduction To Valuation
  11. Fundamental Analysis: Conclusion
Fundamental Analysis: Introduction
RELATED TERMS
  1. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
  2. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
  3. Derived Investment Value (DIV)

    A valuation methodology used to calculate the present value of ...
  4. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  5. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment ...
  6. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  1. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ...
  2. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ...
  3. What is the difference between an income statement and a balance sheet?

    Find the current value of a business by reading the balance statement and determine whether operations are efficient by analyzing ...
  4. What are the differences between operating expenses and cost of goods sold (COGS)?

    Discover the differences between operating expenses and cost of goods sold, how each are calculated and why they are considered ...
comments powered by Disqus
Related Tutorials
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Investing For Safety and Income Tutorial
    Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  3. Discounted Cash Flow Analysis
    Fundamental Analysis

    Discounted Cash Flow Analysis

  4. American Depositary Receipt Basics
    Economics

    American Depositary Receipt Basics

  5. Ratio Analysis Tutorial
    Fundamental Analysis

    Ratio Analysis Tutorial

Trading Center