The term fundamental analysis is widely used in the world of finance. It is a stock analysis methodology that establishes the value of a certain acción or title, called core value. This value is defined as an estimator of the commercial profit of said stock, which in turn is expected to be a good estimate of its future performance.
In order to establish the analysis of what that value is, we must take into account certain parameters. As it is a real or true value of the title, we will have to take into account all those elements that can affect the value. We will count:
- With financial statements periodic: calculating ratios
- Evaluation techniques of the companies to which the titles belong
- Have economic forecasts: analysis of the environment
- General economic information of what happens in the market
- Any type of additional information that affects the value of a security (either internal or external information)
The environmental data are the most important, as they are the ones that will most influence the measurements of the technique that we are analyzing. The environment will not only significantly affect the elements of the technique, but also the own (from which new information will be obtained later for the elaboration of the technique).
However, it should be noted that even the proponents or creators of this methodology have stated that the prediction or data it yields are not XNUMX% reliable. This is easy to understand, since it is very difficult to predict the future and be sure of what is going to happen.
However, all investors carry out this type of analysis to determine whether and when it is appropriate to make an investment. Therefore, we recommend that you know how to do a fundamental analysis to value your investments.