Factors that come into play in fundamental analysis 

Factors you can consider when doing FA are quantified data found in things like operating results and figures of the business and company. These are figures that can not be interpreted in any other way and are written in black and white in the current report. Such figures are things like:

The second type of factor is information and data points that are assessable and can not be quantified as easily. Here it is up to you as an investor to do as many background checks as you can, to get a good understanding of what is being priced into the instrument in question. These values/factors can be things like:

  • Industry/sector

  • Competition

  • An advantage in relation to other industries or instruments/companies in the same sector

  • Management

  • Macro-environment

  • Politics 

  • Laws and regulations


By familiarizing yourself with these things, you as a fundamental investor can make up good opinions about why a company is priced at its current price in the market. You can then find companies that are "underpriced" in relation to their current or future values, and make an assessment of whether this information has not yet "reached" the market.

Strategies within a fundamental analysis, as well as the use of screening to find instruments that may be interesting for further analysis and investment can be found here.

If you want to look for stocks yourself that follow specific fundamental criteria, these two sites are recommended for fundamental screening:

factors that come into play fundamental analysis few factors that come into play fundamental analysis factors