What is fundamental analysis?

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What is fundamental analysis?

Fundamental analysis is a method used to evaluate the intrinsic value of a stock or security by analyzing various factors such as financial statements, industry trends, management quality, competitive advantage, and macroeconomic conditions. It involves examining the underlying fundamentals of a company or asset to determine its potential for future growth and profitability. This analysis helps investors make informed decisions about buying or selling stocks based on the underlying value of the company rather than just market trends or price fluctuations.