Abstract

This study investigates the role of fundamental analysis in stock valuation by comparing various valuation methodologies. It highlights the significance of fundamental factors such as earnings revenue and financial health in determining a stocks intrinsic value. The research evaluates traditional valuation models including the Discounted Cash Flow (DCF) and Price-to-Earnings (P/E) ratios alongside contemporary approaches that integrate qualitative factors. By analyzing a sample of companies across different sectors this study aims to demonstrate the effectiveness and limitations of fundamental analysis in predicting stock performance. The findings underscore the importance of incorporating fundamental principles into valuation practices to enhance accuracy and investment decision-making. The study also provides insights into how fundamental analysis can be adapted to current market conditions and investor needs.