Fundamental Analysis

Fundamental Analysis is the process of analyzing a companies financial statements in order to make an educated prediction on the future evaluation of a company. This is a difficult, yet highly beneficial skill for mid to long term investors.

Popular Fundamental Tools

  • Income Statement

  • Balance Sheet

  • Cash Flow Statements

  • Price/Earnings Ratio (P/E)

  • Current Ratio

  • Quick Ratio

  • EBITDA

Learning these tools can be a highly valuable asset in your trading tool kit. No matter if you are a day-trader or investor, fundamental analysis is very useful for studying a companies performance.