What are the different types of Fundamental Analysis?

1. Qualitative Analysis 🧠 Focuses on non-numerical factors that affect a company’s performance. Key Areas: 👩‍💼 Management Quality: Leadership and decision-making strength. 🌍 Industry Analysis: Market position and competition. 📜 Brand Value: Reputation and customer trust. 🏗️ Business Model: How the company earns revenue and grows. 2. Quantitative Analysis 💹 Involves analyzing financial data and ratios from reports. Key Metrics: 💰 Earnings Per Share (EPS): Profitability for shareholders. 📈 Price-to-Earnings (P/E) Ratio: Stock price vs. earnings. 🧾 Debt-to-Equity Ratio: Company’s financial health. 💵 Cash Flow: Liquidity and operational efficiency. 📊 Return on Equity (ROE): How well a company uses investors’ money. 3. Top-Down Approach 🌎➡️🏢 Starts with macro-level analysis: 🌍 Economy (e.g., GDP growth, interest rates). 📂 Industry trends (e.g., demand-supply balance). 🏢 Specific companies with strong potential. 4. Bottom-Up Approach 🏢➡️🌎 Focuses on analyzing specific companies first: 📋 Financial health. 📜 Business strategy. 🏆 Competitive advantage. Broader market conditions are secondary. ConclusionFundamental analysis uses qualitative and quantitative methods, combined with top-down or bottom-up approaches, to evaluate a company’s potential. 🏆 Perfect for making informed decisions! 📉📊 read less