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Fundamental analysis

Get a powerful tool for evaluating asset values and making informed trading decisions

Valuation of the company or asset

To analyze a stock, traders and investors look at a company's financial statements, profitability, debts, market capitalization and other key indicators. It helps to determine how stable the company is and how promising it is for long-term investments.

Key financial statements:
  • Profit and Loss (P&L) Statement - shows the company's revenue and expenses.
  • Balance statement - shows assets, liabilities, and shareholders' equity.
  • Cash flow statement - shows the company's cash flows.

Macroeconomic factors

Equity, currency and commodity markets are affected by macroeconomic indicators such as:

  • GDP (Gross Domestic Product) - the main indicator of a country's economic activity.
  • Unemployment rate - reflects the state of the labor market and the economic health of the country.
  • Inflation - shows rising prices of goods and services, affecting purchasing power and currency.
  • Interest rates - regulated by central banks and directly affect the cost of credit and investment.

Assessment of industry factors

Analyzing a specific sector or industry helps you understand which companies or assets have the greatest potential for growth.

Important to keep in mind:
  • Current industry trends and outlook.
  • Competition and innovation.
  • External factors such as laws, taxation and government regulation.

How to use fundamental analysis in trading

Long-term investments

Fundamental analysis helps investors select assets for a portfolio for the long term, focusing on real value and growth prospects

Forex trading

In currency trading, fundamental analysis can help predict the movement of currency pairs based on macroeconomic indicators and central bank decisions

Combination with technical analysis

Offering stable and secure platforms for seamless trading

Benefits of fundamental analysis

Long-term perspective

Fundamental analysis helps to value assets based on their real value, which makes it particularly useful for long-term investors

Valuation of undervalued assets

The analysis allows you to find companies or assets whose market price is lower than the real value, which opens up investment opportunities with high growth potential

Forecast based on real data

Evaluating economic indicators and corporate data gives traders a better understanding of the factors affecting the market

Limitations of fundamental analysis

Short-term price fluctuations

Fundamental analysis is better suited for long-term investments because it doesn't take into account short-term changes in the market caused by speculation

Data complexity and volume

This method requires in-depth analysis of a lot of data, which can be time-consuming for novice traders

Failure to make accurate predictions

Even the most detailed calculations cannot fully account for sudden events or unexpected changes in politics or the economy