To be successful in investing in stocks, investors must master fundamental stock analysis, which is a measurement method/means to assess stocks for both risk and profit or to assess whether a stock has potential or not. Investors also often use fundamental stock indicators such as company performance, industry analysis, industry type, market competition, macro and micro economics. Apart from that, stock investors can also use financial analysis such as Price to Earning Ratio, Earning Per Share, Debt to Equity Ratio, Price to Earning Ratio, Return on Equity, Dividend Yield, etc. So basically the function of fundamental analysis is as follows:
1. Determine when to buy and sell shares, so that investors can increase capital gains, at least investors can buy stocks when prices are low.
2. Help investors find the best shares or avoid investing in shares that are not profitable or even lose money.
3. Can find out the stock valuation or fair value of a stock
1. Determine when to buy and sell shares, so that investors can increase capital gains, at least investors can buy stocks when prices are low.
2. Help investors find the best shares or avoid investing in shares that are not profitable or even lose money.
3. Can find out the stock valuation or fair value of a stock
