What is Fundamental Analysis of Stocks?

The Fundamental Analysis is a technique through which the real value of the company’s stocks (whether overvalued, undervalued, or correctly valued) is determined by assessing the factors that affects the company’s business model and its future prospects. The fundamental analyst uses several valuation models such as dividend models (focus on expected dividends), earnings models (focus on expected earnings) and assets models (focus on the company’s assets) to forecast the future value of the company’s stocks. Continue reading →