Fundamental analysis is done to identify the intrinsic value of an asset/ security. A fundamental analysis involves understanding the factors impacting company’s
equity valuation from multiple lenses (macro as well as micro). The purpose of fundamental analysis is to estimate the value of the security and then compare it with the current market price to decide whether the security is under or over-valued; and does it make sense to invest in the security at current price for long term.Fundamental analysis/ investment is about long term investing and value creation.A Fundamental analyst looks as multiple factors in detail before making an investment decision in a company.A few of them are as under.