FUNDAMENTAL ANALYSIS Definition

Bookmark and Share

FUNDAMENTAL ANALYSIS is a method used to evaluate the worth of a security by studying the financial data of the issuer. Performing fundamental analysis will teach you a lot about a company, but virtually nothing about how it will perform in the stock market. Apply this analysis on two competing companies or in comparison to its industry and it becomes clearer which the best investment choice is. See FUNDAMENTALS.

Learn new Accounting Terms

DISCOVERY SAMPLING is sampling to determine whether internal control compliance is greater than or less than the tolerable deviation rate when the expected attribute occurrence rate is zero.

COST OF EQUITY (COE) is the minimum rate of return a firm must offer owners to compensate for waiting for their returns, and for bearing risk. It is calculated: COE = Dividends per Share (for next year) / Current Market Value of Stock + Growth Rate of Dividends.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.