Frequently Asked Question 1. What is fundamental analysis? The essence of fundamental analysis is th

Frequently Asked Question
1. What is fundamental analysis?
The essence of fundamental analysis is the assessment of intrinsic value by criteria such as financial health of a company, the economy, and the state of the market. This explains why it is easy for investors to decide whether an asset is overvalued or undervalued.
2. How is fundamental analysis different from technical analysis?
fundamental analyst uses data of finance and economics to identify the intrinsic value of an asset. A technical analyst, however, uses history of price and volume action to predict future activities in price.
3. What are the main metrics used in fundamental analysis?