Importance of Fundamental Analysis

You are here:
< Back to Knowledge base

With the help of fundamental analysis, one can easily determine the fair value of a company by carefully analyzing the past and present performance of the company.

Fair value helps in deciding whether the company is overvalued or undervalued.

Hence fundamental analysis is important in stock picking.

Fundamental analysis is not a very easy task. People find it difficult to do a stock research.

Fundamental analysis is basically “thinking out of the box” with no predetermined parameters.