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fundamental analysis

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fundamental analysis Introducation               Fundamental analysis is a method of evaluating the intrinsic value of a stock. This form of analysis combines external events and influences, as well as financial statements and industry trends.  The fair value of a stock does not change everyday;To understand what is that fair value, you should take the help of fundamentals, which are what drives prices up and down. Importance : Fundamental analysis is a way to avoid short-term information about a company/stock. Every day there is some news on stocks.  When you buy a Mango from the market, you pay a price that you think is right. If a fruit seller asks you to pay Rs 100 for a Mango is that right ? In the same way, if a Mango is available for 1 Rs. is that right ? If the Mango is available at a Big discount or Big premium, there must be valid reasons for that price.  As a  long term invsetment  you ...