Fundamental Analysis: A method of security analysis that focuses on factors such as a company’s financial performance and outlook, industry trends, and macroeconomic conditions in order to make investment decisions. Fundamental analysis relies on various data sources, such as earnings reports, balance sheets, and price-to-earnings ratios, to gain insight into the value of an asset. It is a cornerstone of investing, giving investors the tools they need to make informed decisions about what companies and investments to back.