There are two ways to evaluate the fundamental analysis: top-down and bottom-up.
Fundamental Analysis Breakdown:
1. Health of Economy
2. Industry
3. Earnings
Top-Down Analysis:
-Checking the health of the economy, followed by the industry, followed by company earnings. If the company earnings are good, this is when you may decide to buy the stock.
Bottom-Up Analysis:
-Checking the earnings, followed by the industry, followed by the health of the economy.
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Thank you so much.. 😀
Thanks.
from india
In bottoms to top you buy first then see the earnings then industry then economy" lol
always good explanations thank you
Thank you helped me a lot!!!
Quick question. How can two companies have equal market caps but have different stock prices? How would you determine which one is the stronger buy?
wow awesome bro you are legend
thanks
I love ur videos ..seriously they ar useful and so simple …keep doing good work man thanks for ur support
helpful my study thank you
Helpful to my study
thank you for that brief session, explaining the differences of the two fundamental analysis types. now able to work on my school assignment…thanx again
I've just discovered your videos today Sasha, and I find them really useful and easy to understand. Thank you for making them.
I appreciate the effort you have put into this video, thank you!
If its any consolation, this video has helped me a lot. Finally someone that can explain the basics of fundamental analysis. Me and my high school Finance class project thank you!
hi i have been considering investments for a year now. i also understand that informed and educative decisions are vital. but i find it difficult to analyze the economy, industry and company (top-bottom). do you have any guidelines or simple steps detailed and focused stratagem on how to look at the health of economy, industry you are planning to invest and the company itself respectively? thanks. 🙂
Which approach do you recommend for beginning investors? Obviously it's best to know and understand both, but which approach do you find more beneficial.