Fundamental Analysis

This feature is free to all full clients via the InterTrader web-based platform.

The tools frame can be found to the right of the trading platform. If it is closed click the double arrows to open the frame.

Fundamental Analysis is provided on the InterTrader platform by Interactive Data, a leading supplier of financial information to market professionals worldwide.

This research package covers a wide range of global stocks. You can dissect a thorough breakdown of company fundamentals, including valuation ratios, dividend information and historic financial statement data. You can also access currency, index and UK sector analysis from the same package, giving you a firm foundation for your trading decisions.

Fundamental Analysis is concerned with determining the intrinsic value of a company as a guide to its future performance in the stock market. In order to discern the intrinsic value of a company, stock analysts will study its fundamental data, which can be broken down into quantitative and qualitative factors.

Quantitative factors include revenue, profit growth, assets and liabilities. This is all the numerical data available in a company’s balance sheet, income statement and cash-flow statement.

Qualitative factors are more intangible and might include brand recognition or proprietary technology. These factors have no clear numerical value but are equally important in determining a company’s potential for future growth.

The best analysts will combine quantitative and qualitative research to provide a complete picture, helping to understand the company within the context of its market and industry. This can prove a sound basis for investment, shedding a light on profit opportunities and future share price movements.

For a full introduction take our free Learning Academy course on Fundamental Analysis.