Fundamental analysis of a company involves evaluation and finding out whether the company revenues are escalating. It also assesses whether the company is capable of paying back debts. What is the standoff of the company with respect to its competitors? Will it be able to sustain the competitors? More importantly, Is the company making a profit, and finally is it worth making stock investments with the company. Fundamental analysis of stocks becomes the core of investing in a business.
The accurate process of doing fundamental analysis of stocks is through careful studying and formulating data on all aspects of the business. The reason for doing so is that a potential investor plans to invest for a long-term, the fundamental analysis of a company becomes a bridge for an investor to study the first business profits and its rate of performance.