Fundamentals

Fundamentals
The qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a company, security or currency. Analysts and investors analyze these fundamentals to develop an estimate as to whether the underlying asset is considered a worthwhile investment.

For businesses, information such as revenue, earnings, assets, liabilities and growth are considered some of the fundamentals.

By looking at the economics of a business, the balance sheet, the income statement, management and cash flow, investors are looking at a company's fundamentals, which help determine a company's health as well as its growth prospects. A company with little debt and a lot of cash is considered to have strong fundamentals.

While fundamentals are most often considered factors that relate to businesses, securities and currencies also have fundamentals. For example, interest rates, GDP growth, trade balance surplus/deficits and inflation levels are some macroeconomic factors that are considered to be fundamentals of a currency's value


Investment dictionary. . 2012.

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  • fundamentals — fun‧da‧men‧tals [ˌfʌndəˈmentlz] noun [plural] FINANCE basic information about a company, the economy etc that must not be forgotten when looking at share prices, currencies etc: • Silver s fundamentals don t justify its current high price, he… …   Financial and business terms

  • fundamentals — index basis, gist (substance) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • fundamentals — noun ADJECTIVE ▪ basic, underlying ▪ good (AmE), solid (esp. AmE), sound, strong (esp. AmE) ▪ The figures confirm that Brazil s sound economic fundamentals remain in place …   Collocations dictionary

  • fundamentals — noun principles from which other truths can be derived (Freq. 2) first you must learn the fundamentals let s get down to basics • Syn: ↑basics, ↑fundamental principle, ↑basic principle, ↑bedrock …   Useful english dictionary

  • fundamentals — [[t]fʌndəme̱ntəlz[/t]] N PLURAL: usu the N, oft N of n The fundamentals of something are its simplest, most important elements, ideas, or principles, in contrast to more complicated or detailed ones. ...teaching small children the fundamentals of …   English dictionary

  • fundamentals — fun|da|men|tals [ˌfʌndəˈmentlz] n the fundamentals (of sth) the most important ideas, rules etc that something is based on ▪ an introduction to the fundamentals of design and print production …   Dictionary of contemporary English

  • fundamentals — fun|da|men|tals [ ,fʌndə mentlz ] noun plural the most basic and important aspects of something: the fundamentals of something: The course deals with the fundamentals of classic French cookery …   Usage of the words and phrases in modern English

  • fundamentals — UK [ˌfʌndəˈment(ə)lz] / US noun [plural] the most basic and important aspects of something the fundamentals of something: The course deals with the fundamentals of classic French cookery …   English dictionary

  • fundamentals — plural noun the fundamentals of the job Syn: basics, essentials, rudiments, foundations, basic principles, first principles, preliminaries; crux, crux of the matter, heart of the matter, essence, core, heart, base, bedrock; informal nuts and… …   Thesaurus of popular words

  • fundamentals —  Basic operations or activities of a business. In the 1990s many American businesses are returning to their fundamentals.  See also core business …   American business jargon

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