Investment Strategies Based on Fundamental Stock Analysis

Citation: Bazyliev Viacheslav Viktorovich, "Investment Strategies Based on Fundamental Stock Analysis", Universal Library of Business and Economics, Volume 01, Issue 02.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Fundamental stock analysis is a methodology aimed at researching the financial performance and competitive advantages of a company in order to assess its investment attractiveness. The main focus is on analyzing revenue growth, profitability and sustainability of the company in the market, as well as macroeconomic conditions such as the general state of the economy and market demand. Effective management plays a key role in a company’s ability to overcome difficulties and seize opportunities to increase value. Investors use fundamental analysis to evaluate the company’s financial statements and determine its fair value, which allows them to identify undervalued and overvalued financial instruments. This method includes analysis at three levels: macroeconomic, industry, and company-specific levels, using various financial ratios and multipliers. Thus, fundamental analysis contributes to making informed investment decisions based on an objective assessment of the value of shares.

Keywords: Investments, Investment Strategies, Fundamental Stock Analysis, Stock Analysis, Stocks.

https://doi.org/10.70315/uloap.ulbec.2024.0102005