Glossary

Fundamental analysis

Study and evaluation of a company's earnings data

The goal of fundamental analysis is to determine a fair price for a company's stock by studying how key company data develops over time. The analysis is divided into two parts: diagnosis and prognosis. Data from the income statement and the balance sheet are analysed and set in relation to the price of the stock. The price-earnings ratio is one of the indicators utilised in fundamental analysis.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.