RESEARCH GOAL: investigating the firmness of the foundations on which a company rests.
Fundamental analysis concerns the social and economic surroundings of a company.
The following comprise the fundamental analysis:
- sector analysis whose purpose is to describe the company's economic and social environment as well as its market surroundings,
- analysis of company standing whose purpose is to recognize the company's internal determinants of success,
- financial analysis whose purpose is to determine the company's economic strength (weaknesses - strengths), providing for its further successful development.