The fundamental analysis helps you in better making an investing decision. Fundamental analysis of stocks helps you not only determine their fair value of a stock but also, with stock fundamental analysis, you can evaluate the health and performance of any organization through crucial numbers and major economic indicators.
Fundamental analysis helps you to predict future price movement and understand whether a stock is undervalued or overvalued. At the same time, it helps you analyze a company’s strength and its ability to compare with its competitors.
Fundamental analysis of stocks also helps in understanding the business model of a firm and the working of management, essential for making a prudent investment decision.