what is fundamental analysis 
fundamental analysis uses ratios gathered from data within the financial statements such as a company s earnings per share eps in order to determine the business s value using ratio analysis in addition to a thorough review of economic and financial situations surrounding the company the analyst is able to arrive at an intrinsic value for the security the end goal is to arrive at a number that an investor can compare with a security s current price in order to see whether the security is undervalued or overvalued 