6.4 Components Of Fundamental Analysis

ECONOMIC , INDUSTRY & COMPANY ANALYSIS

An Economic analysis, company analysis & Industry analysis together will give an investor an idea of the value of a company’s stock which is known as ‘intrinsic value’. It is a combination of macro (general economy), micro (particular company) and intermediate analysis which gives the complete picture of the company itself and the factors associated or related with the company over short-term as well as long-term periods. Within the given set of three broad areas, the areas of focus would differ based on the experience and perceptions of the analysts.