What Is Fundamental Analysis in Equity Research


Fundamental Analysis
Fundamental Analysis


How to do fundamental analysis

In this post, we are going to see what is fundamental analysis and how it is useful in equity research.

Many of you might have heard of this term—fundamental analysis, but don’t know the meaning of it.

Stock Fundamental analysis concept

Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.

Fundamental analysts cover macroeconomic factors, like overall economy and industry conditions and management of companies. So, economy-industry-company analysis is a part of fundamental analysis.

Fundamental analysis of stocks

The end goal of fundamental analysis is to produce a value that investors can compare with current market price in hope of figuring what sort of position to take in that particular stock/company.

So, if the security is under-priced, then go for ‘Buy’, and if the security is overpriced then, ‘Sell’.

Difference between fundamental and technical analysis

1. Technical analysis aims to estimate short term price movements, fundamental analysis focuses on determining long term values.

2. Technical analysis takes into account price and volume of the security, whereas fundamental analysis focuses on basic factors related to firm, industry and economy.

3. Technical analysis attracts short term traders. Fundamental analysis attracts long-term investors.

So technical analysis is more to do with short-term trading and fundamental analysis is used for long-term investments.

Through this post I wanted to give you a very basic idea about fundamental analysis. In next posts, I’ll cover fundamental analysis frameworks.

Any queries on fundamental analysis?

Special Bonus on BIWS Programs from FinanceWalk
Here's an offer on Breaking Into Wall Street (BIWS) programs:

All FinanceWalk readers will get FREE $97 Bonus - FinanceWalk's Equity Research Program.

If you want to build a long-term career in Financial Modeling, Investment Banking, and Private Equity, I’m confident these are the only courses you’ll need. ( Because Brian (BIWS) has created world-class online financial modeling training programs that will be with you FOREVER).

If you purchase BIWS courses through FinanceWalk links, I’ll give you a FREE Bonus of FinanceWalk's online Equity Research Program ($97 Value).

I see FinanceWalk's Equity Research Program as a pretty perfect compliment to BIWS courses – BIWS helps you build financial modeling and investment banking skills and then I will help you build equity research and report writing skills.

To get the FREE $97 Bonus, please purchase from the following links.

Excel and Financial Modeling Fundamentals – Free $97 Bonus

Advanced Financial Modeling - Free $97 Bonus

Bank & Financial Institution Modeling – Free $97 Bonus

Oil & Gas Modeling – Free $97 Bonus

Real Estate & REIT Modeling – Free $97 Bonus

Investment Banking Networking Toolkit – Free $97 Bonus

Investment Banking Interview Guide – Free $97 Bonus

IB Networking Toolkit + IB Interview Guide $144 ( Save $50)

BIWS Platinum – Save $632 ( Save 35%) + Free $97 Bonus : The most comprehensive IB package on the market today. Includes the NEW and Improved BIWS Premium Financial Modeling Course (RRP: $497) PLUS access to the above 6 complementary courses designed to make you into an even more well-rounded IB Professional:

BIWS Premium – Excel & Modeling Fundamentals and Advanced Financial Modeling programs together – save $97 ( Save 20% ) + Free $97 Bonus

Industry Specific Course Bundle – get Bank Modeling + Oil and Gas Modeling + Real Estate Modeling for just $697 and save $344 + Free $97 Bonus

In order to get your FREE Bonus, you must:

  1. Purchase the course through FinanceWalk links.
  2. Send me an email along-with your full name and best email address to avadhut@financewalk.com so I can send you the course login details.
Click Here to Check All BIWS Programs – Free $97 Bonus

Next Batch Starts on 8th September, 2015
Our Full Time Financial Modeling Investment Banking Course (6 Weeks) starts on 8th September, 2015 and 10 Day Weekend Workshop starts on 5th September, 2015 in New Delhi, India.

Only few seats remain. Interested candidates can contact me

Free Download: Financial Modeling Videos

Learn the best tools, get Discount Coupon Codes and Bonus to build a powerful career in finance.


  1. Bijay Jain says

    Great article! I am a newbie in stock market and I was seriously looking for something on fundamental analysis of stocks to gain an insight. It was worth reading.

Leave a Reply

Your email address will not be published. Required fields are marked *