What is fundamental analysis primarily concerned with?

Fundamental analysis is primarily focused on analyzing individual securities with the intent of making long-term investment decisions. This approach evaluates a company's financial statements, management team, market position, and overall economic conditions to determine the intrinsic value of the security. By examining these factors, investors can make informed judgments about whether a stock is undervalued or overvalued, providing a basis for buy or sell decisions.

This method emphasizes the underlying value of a company rather than short-term fluctuations in market prices or trends. It aims to identify investment opportunities that may not be reflected in the current market prices, relying on a thorough assessment of financial health, profitability, and growth potential. As such, fundamental analysis supports a disciplined investment strategy focused on long-term performance rather than transient market reactions or tactical approaches.