Rachana Ranade
Rachana Ranade

@rachana_ranade

6 Tweets 28 reads May 07, 2022
What is Fundamental Analysis in the Stock Market? πŸ€”
A thread... 🧡
Fundamental analysis is the study of a assessing stock from a 360 degree perspective.
It combines analysis of a company that includes:
β€’ Financial statements
β€’ Internal factors such as operational efficiencies, management competence, usage of technology
β€’ External factors like geopolitical, supply chain disruptions, events, industry trends, government policies
What are the two parts of fundamental analysis?
πŸ‘‰ Qualitative and Quantitative.
Qualitative analysis includes assessing:
πŸ‘‰ The product and its demand
πŸ‘‰ Future market / sustainable demand
πŸ‘‰ Moat / competitive advantage
πŸ‘‰ Competitors
πŸ‘‰ Management decisions
Quantitative analysis is analysis that is purely number-based.
It considers the company’s financial statements.
It includes analysis of various ratios that hint towards various aspects about the company’s operations.

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