Fundamental analysis is a method of evaluating the intrinsic value of a security by examining its underlying economic and financial factors. This can include reviewing financial statements, analyzing the competitive landscape, and considering the overall state of the industry in which the company operates.

There are several tools and techniques that can be used in fundamental analysis, including the following:

  1. Financial statements: Analyzing a company's financial statements, such as its income statement, balance sheet, and cash flow statement, can provide insights into its financial health and performance.

  2. Ratios: Financial ratios, such as the price-to-earnings ratio (P/E ratio) and the debt-to-equity ratio, can be used to compare a company's financial performance to that of its peers or to historical benchmarks.

  3. Competitive analysis: Examining a company's competitors and the competitive landscape in which it operates can provide insight into its market position and potential for growth.

  4. Industry analysis: Evaluating the overall state of the industry in which a company operates can help to identify trends and opportunities as well as potential challenges and risks.

Fundamental analysis can be used to determine the intrinsic value of a security and to identify potential mispricings in the market. It can also be used to generate investment ideas and to make informed decisions about the allocation of capital.