# Fundamental Analysis

*Trading & Technical Analysis — Finicade finance glossary*

Fundamental analysis values a security from the underlying business — earnings, cash flow, balance sheet, competitive position — versus its price.

Fundamental analysis values a security from the underlying business — earnings, cash flow, balance sheet, competitive position — and compares that value to the price. It answers what something is worth; technical analysis answers what it's doing. The two are not opposites so much as different time horizons, and most professional processes use fundamentals for selection and price behaviour for timing.

**Also known as:** fundamentals, bottom-up analysis

**Related terms:** [Technical Analysis](https://finicade.com/glossary/technical-analysis), [Equity Valuation](https://finicade.com/glossary/equity-valuation), [Discounted Cash Flow (DCF)](https://finicade.com/glossary/dcf), [Financial Ratios](https://finicade.com/glossary/financial-ratios), [Value Investing](https://finicade.com/glossary/value-investing)

Source: https://finicade.com/glossary/fundamental-analysis