Fundamental Analytics
Fundamental Analysis, unlike Technical Analysis, is not made graphically, but by making economic, sector and company analyzes for buying and selling decisions.
What is Fundamental Analysis and How Is It Done?
Fundamental Analysis, unlike Technical Analysis, is not made graphically, but by making economic, sector and company analyzes for buying and selling decisions.
Fundamental analysis allows us to find the true value of the instrument to be invested. Buying and selling transactions are performed by comparing the actual value found with the market values.
One of the most important elements to be considered in fundamental analysis is the policies that governments implement or signal to implement. Policies can change the results of the analysis by affecting the economy, industry and firms.
Fundamental analysis is a very difficult type of analysis. It should be handled carefully. It is necessary to reach the correct result by associating all data with each other. Fundamental analysis is usually carried out in three stages.
1-) Economic and Political Analysis
2-) Sector Analysis
3-) Company Analysis
Economic and Political Analysis
Economic and Political Analysis Analyzes such as the state of the global economy, the growth or contraction of the national economy, how healthy the growing economy is, and what direction the economy will move in the future are made within the scope of economic analysis. Researches showing that the market has turned into a single market lately show that the global economy has a great impact as well. For this reason, it will be a good economic method analysis to examine from the global economy to the national economy first.
One of the most important factors that should not be forgotten when performing fundamental analysis and economic analysis is that the market is now becoming a single market. For this reason, the analysis of the external world should be added to the analysis.
Industry Analysis
There is an industry in which companies are involved. Some companies are in more than one industry. Sectors also have a certain return and cost to companies. Sector analysis is made with many factors such as the demand for the sector, the supply offered by the sector, the future life of the sector, the effect of technology on the sector, the competitive environment of the sector, and profitability rates. It includes many companies in the sector. Internal or external changes in the sector affect companies. As a result of the sector analysis, it can be predicted what awaits the company in the future. In addition to the industry, government policies also have an impact. Sector analysis is an important part of fundamental analysis.
While sectors are often shaped according to the general world, the opposite can also occur. Although some sectors may enter a recession period in some countries, they may experience a growth period in some countries.
Company Analysis
The type of analysis made with data such as the financial statements of the companies and companies in the past and the current period, company performance data and how well the company is managed is called firm analysis. There are many companies in the market and sector.
Sector analysis allows us to reduce firms here and firms in the decided sector are examined. It is important to monitor and examine each company well. Fundamental analysis is one of the most important stages. The company’s investment, etc., by not being contented with only the financial data about the company. Following the news will allow us to make a good analysis. The company’s shareholding structure is also taken into account, along with data such as the position of the company or company in the market, the profit share from the market, the size and location of the company in the sector.
While analyzing the company
Horizontal Analysis (Comparative Tables Analysis)
Vertical Analysis (Percentage Method)
Trend Analysis (Trend Percentages)
Ratio Analysis (Liquidity, Turnover, Leverage, Profitability, Market Value Ratios)
analysis methods such as