Trading glossaryReviewed 16 July 2026
Definition
Fundamental analysis evaluates economic, financial, industry, and issuer information to estimate an instrument’s condition, prospects, or value relative to price.
In market context
The inputs may include earnings, cash flow, balance-sheet strength, competitive position, interest rates, supply and demand, or macroeconomic policy, depending on the asset. Different analysts can reach different conclusions from the same data because forecasts and valuation assumptions vary. A sound fundamental case can still lose money if the price already reflects it, the timing is wrong, or unexpected information changes the outlook.
Source
Use the primary source for fuller regulatory or market context.