Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value its stock.
Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock.
Fundamental Analysis Tools
These are the most popular tools of fundamental analysis. They focus on earnings, growth, and value in the market.
Earnings per Share � EPS
Price to Earnings Ratio � P/E
Projected Earning Growth � PEG
Price to Sales � P/S
Price to Book � P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Return on Equity
Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock.
Fundamental Analysis Tools
These are the most popular tools of fundamental analysis. They focus on earnings, growth, and value in the market.
Earnings per Share � EPS
Price to Earnings Ratio � P/E
Projected Earning Growth � PEG
Price to Sales � P/S
Price to Book � P/B
Dividend Payout Ratio
Dividend Yield
Book Value
Return on Equity
