Fundamental Analysis Law and Legal Definition

Fundamental Analysis is a method of security valuation which basically involves the examination of company’s financials and operations, especially sale, earnings, growth potential, assets, debt, management, products and competition. Fundamental analysis is conducted to determine a company’s underlying worth and potential for growth. For example, a professional investment advisor could attempt to outperform the market, by utilizing a “fundamental” analysis of factors such as a firm's management, its position within its market segment, etc.