Investing
Fundamental Analysis
Fundamental analysis evaluates a company's intrinsic value by examining financial statements, management, industry, and economic factors.
Example
Analyze annual reports and balance sheets for fundamental analysis.
Related terms
P/E Ratio
Price-to-Earnings (P/E) ratio measures a company's current share price relative to its per-share earnings. It indicates how much investors are willing to pay per rupee of earnings.
ROE
Return on Equity (ROE) measures a company's profitability relative to shareholders' equity. Higher ROE indicates efficient use of equity capital.