What is fundamental analysis?

The two main approaches to deciding which shares to buy are fundamental and technical analysis. Both approaches have their advantages and disadvantages and there are many investors who choose to use a combination of both types of analysis to improve their investment decisions.

Fundamental analysis is the study of the financial data and other qualitative measures of the company and the environment in which they operate to determine the value of a company.

Getting started with fundamental analysis

Fundamental analysis explained

Fundamental analysis can be as simple or as in-depth as your experience allows. We've provided a basic overview of a few simple fundamental analysis concepts here for you.

Common fundamental analysis terms

A handy list of some of the more common fundamental analysis terms and what they mean.

Basic fundamental analysis

Fundamental analysis is based on the idea that if the fundamentals of a company are right and the share price is below a measure of value then the share is likely to be a good long-term investment regardless of short term price fluctuations.

The first step is knowing how to read the financial statements. Watch this video that tells you about what the annual report contains and why it is important.

ASX Course 10 Fundamental analysis

Lesson 10 in the ASX shares course focuses on fundamental analysis. 

Fundamental analysis: What is it?

Investopedia explores fundamental analysis in a series of articles looking at both quantitative and qualitative factors.

What is fundamental analysis?

Stockcharts has a detailed tutorial on fundamental analysis including an overview of the strengths and weaknesses.

Applying fundamental analysis

Fundamental analysis investing strategies

Explore four fundamental analysis investing strategies to see if any are a good fit for you.

Finding a healthy company

Hear the top tips on finding a healthy company from ASA company monitor Geoff Sherwin.

Stock Screening Checklist

If you are going to use fundamental analysis, having a plan and a checklist before entering is a good idea. Check out an ASA's stock screening checklist and adapt it to suit your investing style.

Combining fundamental and technical analysis

Take advantage of the strengths of both approaches and consider combining fundamental and technical analysis to inform your investment decisions.

20 Lessons on value investing

Investors Mutual Limited have put together a series of 20 lessons on a broad range of value investing topics.

Strategies for selecting small caps

'Small caps' is the term used for companies with lower market capitalisation. Investing in the small caps is not easy and it's not a part time job.