Fundamental Analytics (2024)

FAQs

What is meant by fundamental analysis? ›

What is Fundamental Analysis? Fundamental analysis is a method of assessing the intrinsic value of a stock. It combines financial statements, external influences, events, and industry trends. It is important to note that the intrinsic value or a fair value of a stock does not change overnight.

It is a collection of tools that quantitatively describes the data in summary and graphical forms. Such tools compute measures of central tendency and dispersion. Mean, median, and mode are commonly used measures of central tendency. Each measure indicates a different type of typical value in the data.

Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management.

Fundamental analysis (FA) is a method used to identify a stock's intrinsic or fair market value by examining a range of economic factors and financial metrics. FA let's investors determine if a stock's intrinsic value is lower or higher than its current market price.

Analytics defined

Quite simply, analytics helps us see insights and meaningful data that we might not otherwise detect. Business analytics focuses on using insights derived from data to make more informed decisions that will help organizations increase sales, reduce costs, and make other business improvements.

However, there are five characteristics of data that will apply across all of your data: clean, consistent, conformed, current, and comprehensive. The five Cs of data apply to all forms of data, big or small. Your data processing should include checks for all of the following attributes.

Data analytics: Key concepts

There are four key types of data analytics: descriptive, diagnostic, predictive, and prescriptive. Together, these four types of data analytics can help an organization make data-driven decisions. At a glance, each of them tells us the following: Descriptive analytics tell us what happened.

Fundamental Analyst salary in India ranges between ₹ 2.0 Lakhs to ₹ 11.0 Lakhs with an average annual salary of ₹ 6.2 Lakhs. Salary estimates are based on 64 latest salaries received from Fundamental Analysts.

What skills are needed for fundamental analysis? ›

Fundamental analysis involves assessing the intrinsic value of an asset by analysing both quantitative and qualitative factors. For example, an investor may examine a company's financial statements, management quality, competitive position, and industry trends to determine whether its stock is a good investment.

For instance, fundamental analysis requires the ability to read financial statements, an understanding of macroeconomic factors, and knowledge of valuation techniques. It primarily relies on public data, such as a company's historical earnings and profit margins, to project future growth.

There are two types of fundamental analysis – Qualitative and Quantitative. Qualitative is inclined towards goodwill, market conditions, brand value, and company performance. In contrast, the quantitative analysis is statistically driven. Fundamental analysis is often compared with technical analysis.

Fundamental analysis focuses on financial statements and economic indicators to assess an asset's intrinsic value, making it more suitable for long-term investment decisions. Alternatively, technical analysis examines share price movements and trends to identify investment opportunities.

Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect currency prices.