Notas del episodio
● What it is: Fundamental analysis is a method of determining a stock's intrinsic value. It uses publicly available data to see if a stock, and the issuing company, are valued correctly by the market.
● How it works: Fundamental analysts look at a company's financial statements and broader economic indicators to figure out the true worth of a company. If a stock's fair market value is more than the market price, the stock is undervalued and it’s recommended to buy it. If the fair market value is less than the market price, it’s overvalued, and the recommendation may be to not buy the stock, or sell it if you already own it.
● Why it’s important: By understanding the fundamentals of a company, investors can look past short-term price fluctuations and focus on the factors that drive the company's operations and long-term performance.