Tutorials for Faster Learning


Glossary Quant 101


Linux Data Science

~/ home  / finance  / glossary  / fundamental analysis

Fundamental analysis definition

A long-practiced active management approach where practitioners compare a company's intrinsic value to market value to identify values.


Fundamental analysis is the process of reviewing financial statements, business prospects, management quality and corporate strategy with the goal of deriving the current value of a company or security. This sometimes involves using discounted cash flows to derive an intrinsic value. It is often associated with adaptive, subjective and artistic approaches to security selection.

Synonym: valuation analysis

Other Original Content


Click box for answer.

Fundamental analysis, to many, is the most subjective of the four broad investment philosophies. | True or False?

True, relative to Passive, Quantitative and Technical

In a Sentence

Kay:  How would you characterize your position? Top-down or bottom-up?
Ann:  Hmm, I assume you mean the direction of our fundamental analysis .


Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.

Videos can also be accessed from the YouTube Channel.

Video Script

If this term had a video, the script would be here.

Related Terms

Our trained humans found other terms in the category investing approaches you may find helpful.

Learn More About The Glossary

For links to all glossary terms and videos click the Outline button below.

What's Next?

Learning feels so good. Subscribe now to keep it going.

Next we walk through the calculation of  geometric return . Click Next.

Outline Back Next

~/ home  / finance  / glossary  / fundamental analysis

fundamental analysis
intrinsic value
financial statements
management quality
investment philosophy
corporate strategy
discounted cash flow
free cash flow
dividend discount