Fundamental+Analysis

Improved by: Hye Ji Jun + Kyu Won Kim
 * BY: Yoo Hyun Kim + Won Jun Lee **

|FUNDAMENTAL ANALYSIS

- Fundamental analysis is a investing method used to determine the value of stock after analyzing the 'fundamental' financial data of the company.
 * What is fundamental analysis??**
 * - It is the basis and cornerstone of investing.**
 * - Most of the investment strategies include fundamental analysis.**
 * - The most important part of fundamental analysis is researching the financial statement, which involves looking at a company's revenue, expenses, assets, liabilities, and all other financial aspects of the company. This helps investors to gain insight on the company's future performances.**
 * - Another aspect of analyzing and understanding a company is qualitative analysis. This helps investors gain insight on the company's intangible aspects.**
 * - It does not look at the overall state of the __#|stock market__, but rather looks at a specific company**


 * Why use fundamental analysis??**


 * - Stock market may price a company wrong by mistake time to time.**
 * - Understanding the values and financial statements of various companies is key because in stock markets profits are made by finding underpriced stocks and waiting until the value of companies change.**
 * - One will have a better understanding of whether the price of a stock is undervalued or overvalued at the current market price**

- Price to book (P/B) - Price to Sales (P/S) - Projected Earning Growth (PEG) - Book Value
 * Key Tools of Fundamental Analysis:**
 * - Earnings**
 * - Profit margins**
 * - Return on equity**
 * - Price-to-earnings (P/E)**


 * CHECK OUT A VIDEO ABOUT FUNDAMENTAL ANALYSIS! ->** http://www.investopedia.com/video/play/understanding-fundamental-analysis/#axzz2LJbdNXrT


 * QUIZ/TEST QUESTIONS!! **


 * 1. What is the difference between a financial statement and a qualitative analysis? **


 * 2. Why is it advantageous to understand a fundamental analysis of a company? **


 * 3. Why is it crucial to know when the price is undervalued or overvalued at the market price? **


 * Sources: **

http://www.investopedia.com/university/fundamentalanalysis/#axzz2LJbdNXrT http://www.euroinvestor.com/ei-news/2012/02/12/stock-school-5-important-elements-in-fundamental-analysis/15694 http://www.investorguide.com/igu-article-445-investing-strategies-fundamental-analysis.html http://www.timelessfinance.com/2012/08/16/fundamental-analysis-for-value-investing/

Keynote: