™Compare revenue, margins, debt, cash generation and valuation assumptions rather than treating a rising share price as proof of business strength.
Fundamentals
Fundamental analysis
Evaluation of a security using business, financial, competitive and economic information.
Plain-English context
Put the definition to work.
Sound analysis can still lead to a loss when price, horizon or unforeseen facts differ from the thesis.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide