What is Fundamental Analysis

A method of evaluating a stock by attempting to measure its intrinsic value Fundamental analysts study everything from the overall economy and industry conditions, to the financial condition and management of companies

A fundamental analyst would most definitely look into the details regarding the balance sheets, profit loss statements, ratios and other data that could be used to predict the future of a company.In other words, fundamental analysis is about using real data to evaluate a stock's value. The method uses revenues, earnings, future growth, return on equity, profit margins and other data to determine a company's underlying value and potential for future growth.