Fundamentals are the qualitative information and quantitative characteristics of a company, stock, bond, or other securities. Qualitative fundamentals include management experience, the company’s reputation, and the geopolitical environment in which the company operates. Quantitative information is the data that can be analysed through mathematics and statistics, such as recent company accounts and market data.
Fundamentals Analysis uses both types of information to determine a security’s intrinsic value from micro and macro contexts. It is often used to evaluate whether the security is fairly priced in the market.
References
- Segal, T. (2023). Fundamental analysis: Principles, types, and how to use it. [online] Investopedia. Available at: https://www.investopedia.com/terms/f/fundamentalanalysis.asp.