Fundamental analysis 
Fundamental analysis is about looking at the intrinsic value of an investment. In other others, it is the examination of the underlying forces which influence the well-being of the economy, industry groups, and companies. For the national economy, we should focus on economic data (the economic indicators) to assess the present and future growth of the economy. At the industry level, we examine the supply and demand forces for the products offered to determine each industry’s potential growth. At the company level, the detailed examination of financial data (Financial statements), management, business concept and competition level is required.
All these analyses need to be done to derive a stock's current fair value and forecast its future value. If the fair value is not equal to the current stock price, fundamental analysts believe that the stock is either over- or under- valued, and the market price will consequently approach towards the fair value.
It should be noted that our financial markets are weak-form efficient. By believing that prices do not accurately reflect all available information, fundamental analysts look to capitalize on perceived price discrepancies.
There are two approaches to conducting fundamental analysis: top-down and bottom-up. Both have their strengths and weaknesses, and both have the same goal of choosing the best companies for investment. The bottom-up approach starts from the individual company before proceeding to the general economic and market conditions. On the other hand, the top-down approach, as the name suggests, begins from the macro level (general or broad) and ends at the micro level (specific).
