Fundamental analysis is the process of looking at a company's basic or fundamental financial level. This type of analysis examines important terms of a companies to determine its financial health and gives you an idea of the value its stock.
Many investors use fundamental analysis alone or in combination with other technical tools to evaluate stocks for investment purposes. The idea behind this is to determine the current worth and, more importantly, how the market values the stock in coming future.
The following points are based on important tools of fundamental analysis and what they tell you. Even if you don't plan to do in-depth fundamental analysis yourself, it will help you to follow stocks more closely which will give you good returns in future/long term investments.
It's all about earnings. When you come to the bottom line, that's what investors want to know. How much money are the companies making and how much is it going …