Abstract

Fundamental analysis has long been regarded as a cornerstone of stock valuation offering a structured and empirical approach to determining the intrinsic value of financial securities. While market sentiment macroeconomic fluctuations and speculative forces often influence short-term stock price movements long-term value creation is fundamentally anchored in the underlying financial strength operational efficiency and strategic positioning of firms. This research paper investigates the importance of fundamental analysis in stock valuation through a comparative study that examines how financial indicators qualitative variables and macroeconomic determinants influence investment decisions and valuation outcomes. By reviewing theoretical frameworks contrasting analytical methodologies and evaluating practical applications the study highlights the role of earnings cash flows growth potential risk assessment corporate governance and industry structure in determining intrinsic value. It also