Fundamental Analysis


Hello and Welcome to this page on Joyful Dividends! This is a personal finance and investing blog designed to help you acquire relevant knowledge in investing. We believe that everyone, regardless of whether you are trained in finance, can invest profitably and successfully with fundamental analysis.

Apart from technical analysis, we hope to help you acquire good working knowledge of fundamental analysis. This will enable you to evaluate the financial and operational health of potential stocks, helping you achieve better returns in the long term.

Understanding Fundamental Analysis

I’m sure many aspiring and current investors in the market have heard of the term fundamental analysis. What is it exactly?

To put it simply, it is how analysts and everyday investors evaluate a stock to determine if it’s worth making an investment in. Some of the factors that can help investors decide include the company’s current financial conditions, company management and its current operational performance.

Investing with Fundamental Analysis

At the end of a fundamental analysis exercise, investors should try to answer the question of whether the stock would be worth more in the future, than its current share price or valuation.

At Joyful Dividends, we use a combination of fundamental and technical analysis in order to decide whether a particular stock is worth investing in, and can help us make a profit.

Fundamental Analysis Tools

This page lists down some of the key tools used in fundamental analysis and what they tell investors about a company. While you may not plan to do fundamental analysis yourself because it can be very time consuming, understanding the terms and references below can still help you make better decisions in the long term.

Some of the more popular fundamental analysis tools focus on earnings, growth and value in the market.

To help you understand the tools better, we have broken them down into separate blog posts which you can link to and read about. Here are some of them:

  • Earnings Per Share (EPS)
  • Price to Earnings Ratio (PE)
  • Projected Earnings Growth (PEG)
  • Price to Sales (PS)
  • Price to Book (PB)
  • Dividend Payout Ratios
  • Dividend Yield
  • Book Value
  • Return on Equity

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