📚 Understanding Fundamental Analysis (FA) 📊
What is Fundamental Analysis?
🔍 FA is a method that looks at a company's financial health to determine its intrinsic value. It's like being a detective for a company's finances! 🕵️♂️
Key Components:
📄 Financial statements📈 Earnings reports🌍 Economic environment💰 Revenue📊 Debt levels🚀 Growth
Example:
Imagine you want to invest in "Techie Toys Inc." You check their financial statements, earnings reports, and the overall economic environment. If they show strong growth and healthy revenue, it might be a good long-term investment! 📈
Pros:
🧐 Holistic view of health and growth💎 Identify undervalued companies🎯 Correct picks lead to significant returns😌 Less stressful & not time-consuming
Cons:
🚫 Not suitable for short-term trading🧩 Complex, many factors and variables🧠 Requires economic understanding
