The fundamental analysis lets you have a glance at the structure of the company. It is responsible for calculating the intrinsic value of the share price. Whether the current price is perfect for a particular share or it is underperforming lets you decide a perfect call. If the share price is underperforming than its intrinsic value then it is relevant to buy and hold that security for a longer period of time. It involves both macro and microanalysis of the company.
Following parameters are involved while doing fundamental analysis:
It basically lets to pick the correct stock for the portfolio. It also depicts how the company is performing with respect to its peer groups. With the complete insights of the company, fundamental analysis brings the right stock to the portfolio.