InsiderFlow › Glossary › What is fundamental analysis?
Fundamental analysis values a company by studying its financials, business and prospects, to estimate what it's really worth — regardless of the market price.
The premise: every company has an intrinsic value, and the market price eventually converges to it. The fundamental analyst studies revenue, margins, debt, competitive advantages and management quality, then compares estimated value with price.
It's the approach of Warren Buffett and nearly every great long-term investor: buy good companies when the market prices them below what they're worth.
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
Fundamental studies the company (financials, business); technical studies the chart (past prices and volumes).
No: the key concepts (earnings, margins, debt, multiples) plus the patience to read numbers are enough. Tools like InsiderFlow help you start.