| Fundamental analysis is a method to measure the value of a financial instrument by examining related economic and financial factors, which are commonly called fundamental indicators. Fundamental analysts study factors that can affect an instrument's value, from the state of the economy and industry conditions (macroeconomic factors) to the effectiveness of the company's management (microeconomic factors).The end goal is to come up with a number that an investor can compare with the current price to see whether the instrument is undervalued or overvalued. |