Guides · Easy money, trading and scams: the truth
What is fundamental analysis?
In short: Fundamental analysis judges a stock by the business: its sales, profits, debt, growth and price relative to all that. It is mainly used for long-term investing.
The basic numbers
Revenue, net income, margins, debt, cash flow, dividends and the P/E ratio. Each stock page on the radar shows some of them when available.
What it helps with
Avoiding paying a fortune for a fragile company, understanding why a stock falls, comparing two companies in the same sector.
Its limits
A great company can be a bad investment if its price is too high. And the market can ignore good news for a long time.