Good information. Stock fundamentals matter because analyzi...
Good information.
Stock fundamentals matter because analyzing stock fundamentals is a method of determining a stock's real or "fair market" value.
Various fundamental factors can be grouped into quantitative fundamentals and qualitative fundamentals.
The concept of value investing is pretty simple: you buy stocks for less than their underlying values.
While the concept is simple, it is not easy to figure out the value of a company.
So that's why stock fundamentals matter——Analyzing stock fundamentals is a method of determining a stock's real or "fair market" value.
What are the stock fundamentals?
The various fundamental factors can be grouped into two categories: quantitative and qualitative.
Qualitative Fundamentals
The qualitative fundamentals are less tangible.
They might include the quality of a company's key executives, its brand-name recognition, patents, and proprietary technology.
It's also important to consider a company's industry: customer base, market share among firms, industry-wide growth, competition, regulation, and business cycles.
Quantitative Fundamentals
Quantitative fundamentals are the measurable characteristics of a business.
That's why the biggest source of quantitative data is financial statements. Revenue, profit, assets, and more can be measured with great precision.
The three most important financial statements are income statements, balance sheets, and cash flow statements.
Stock fundamentals matter because analyzing stock fundamentals is a method of determining a stock's real or "fair market" value.
Various fundamental factors can be grouped into quantitative fundamentals and qualitative fundamentals.
The concept of value investing is pretty simple: you buy stocks for less than their underlying values.
While the concept is simple, it is not easy to figure out the value of a company.
So that's why stock fundamentals matter——Analyzing stock fundamentals is a method of determining a stock's real or "fair market" value.
What are the stock fundamentals?
The various fundamental factors can be grouped into two categories: quantitative and qualitative.
Qualitative Fundamentals
The qualitative fundamentals are less tangible.
They might include the quality of a company's key executives, its brand-name recognition, patents, and proprietary technology.
It's also important to consider a company's industry: customer base, market share among firms, industry-wide growth, competition, regulation, and business cycles.
Quantitative Fundamentals
Quantitative fundamentals are the measurable characteristics of a business.
That's why the biggest source of quantitative data is financial statements. Revenue, profit, assets, and more can be measured with great precision.
The three most important financial statements are income statements, balance sheets, and cash flow statements.
What do you need to know about stock fundamentals?
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