If you’re eyeing a company to invest in, you need to know how to evaluate its investment worthiness. There are plenty of evaluation strategies and methods: a key approach is fundamental analysis. 

Fundamental analysis is a way of figuring out whether a stock is worth investing in based on how the company is performing as a business and not just how its stock price moves. 

The goal of fundamental analysis is to estimate a company’s intrinsic value, assess whether its current stock price looks low, high, or just about right, and then make a decision about whether the stock has potential for long-term, above-average returns.

To perform a fundamental analysis of a company, investors look at:

• Company data: things like revenue, profits,…