Fundamental Information

 

Home
Site Map
Add Term
Search
About Us
Contributors

Fundamental Information

Information relating to the economic state of a company or economy. In market analysis, fundamental information is related to the earnings prospects of the firm only.



Fundamental Information

Similar Matches

Fundamental analysis

Fundamental analysis

An approach to investment that focuses on analysis of a company's financial and business strengths, and how its performance has been converted into share price movements in the past.So fundamental analysis is primarily concerned with:turnovercompetitive advantagemanagementprofitabilityassetscash flowearningsrelative strength of the share priceOn the basis of these, analysts forecast:the future growth rate of a company's earningshow long the expected growth rate will lastWith those figures, the analysts predict the stream of future dividends from the company, discount them backwards to get their current value, and arrive at a figure for what the shares are currently worth.Critics of this sort of analysis argue that the figures are highly conjectural given that no-one knows how quickly a company will grow, nor how long it will carry on growing.Fundamental analysis is often contrasted with technical analysis which focuses less on the business per se than on pure share price movements and how they are influenced by market sentiment. As far as technical analysts are concerned, the value of a share has less to do with a mathematical computation of future earnings than it does with the mood of the market and 'what people will pay'.


Fundamental forecasting

Fundamental forecasting

Analyzing the future on the basis of fundamental relationships between economic variables and exchange rates.




 
All rights Reserved. Do not copy without permission.