What is Fundamental Analysis (FA)?

Fundamental analysis (FA) is an investment analysis method employed by traders and investors to evaluate the intrinsic value of an asset — and then determine if it is currently undervalued or overvalued. FA can include the examination of microeconomic factors such as current economic conditions, market trends, or industry comparison, as well as analysis of the team behind a company or asset itself. Fundamental analysis contrasts with the other major method of market analysis, technical analysis (TA), which examines price, volume, and other technical indicators.