Fundamental analysisis used extensively in the securities industry. It is used to assess the value of a company or an industry. This is not an exact science, but rather as a measurement tool that can help you in your decision.
The evaluation of a company made ??with the fundamental analysis is not only in calculating its annual report. In addition to this step is to find the most statistically possible about the company to strategic analysis for predicting the location of the company in question is in relation to the company of the same industry, it must also evaluate future projects planned by the company, etc..
In fundamental analysis, several economic factors will be analyzed in order to position the company from the competition. Moreover, these figures can be used to get an idea of ??the future growth of the company.
It is important to be aware that fundamental analysis is not a financial analysis, but a much more comprehensive. It should also be able to know, beyond the numbers, if a company with a good future or not.
Then we will be in a better position to assess whether the action of the company is overvalued or undervalued and we will make an investment less risky.