Fundamental analysis is a method of evaluating the intrinsic value of an asset, such as a stock or currency, by examining related economic, financial, and other qualitative and quantitative factors. This can include analyzing a company’s financial statements, management team, industry trends, and broader economic indicators like interest rates and inflation.
The goal is to determine whether the asset is undervalued or overvalued, providing insights for investment decisions. It’s often contrasted with technical analysis, which focuses on price charts and market behavior.
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