Fundamental Analysis

What this video covers

• How fundamental analysis calculates intrinsic value from financial statements, management quality, and economic factors, and why it answers what to buy rather than when to trade
• The price-to-earnings (P/E) ratio formula and why it must be compared to peers or historical range rather than judged in isolation
• What price-to-book (P/B), debt-to-equity, current ratio, and return on equity (ROE) each measure about a company's financial health and risk
• How top-down analysis starts with gross domestic product (GDP), interest rates, and inflation then narrows to sectors and companies
• How bottom-up analysis starts with individual company financials then zooms out to industry and economic context
• Why both top-down and bottom-up are forms of fundamental analysis, not technical analysis
• How to instantly distinguish fundamental analysis activities (financial statements, ratios, balance sheets) from technical analysis activities (charts, price movements, trading volume)