What is fundamental analysis?

Fundamental analysis relies on using financial ratios drawn from data on corporate financial statements to make inferences about a company's value and prospects. There are certain qualitative fundamentals that analysts should always consider when analyzing a company. These include the following:

What are the different types of fundamental analysis?

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.

Can fundamental analysis be used for stock analysis?

Fundamental analysis is widely used for stock analysis but can also be applied to other markets, such as forex or futures; however, the approach to the study would be slightly different. Investors assessing stocks typically take a bottom-up approach, doing in-depth research of their financials, such as annual or quarterly reports.