Conducting fundamental analysis typically involves the following steps:
Gather Data: Collect financial statements, industry reports, and macroeconomic data. Analyze Financial Statements: Use ratio analysis and other tools to evaluate the company's financial health. Evaluate Industry and Economic Conditions: Understand the broader context in which the company operates. Make Projections: Based on the data, project future earnings, growth rates, and potential risks. Determine Intrinsic Value: Use valuation models like Discounted Cash Flow (DCF) to estimate the company's fair value.