How do you calculate fundamental analysis ?
Fundamental analysis, as explained earlier, tells you the true value of a stock.
This intrinsic/fair value of a company/stock is the present value of all expected future cash inflows (or earnings) from that company/stock. This is what the process of fundamental analysis achieves.
The fair value represents the potential price of a company. If the market value is the same or lower than fair value, then you should buy the stock and wait. Use a fundamental report to get the fair value.
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