A company’s fundamentals are its financial and operating indicators, such as earnings, revenue, margins, and growth. These indicators can give you a clear picture of a company’s health and prospects. While a company’s share price is important, it’s only one part of the picture. By focusing on a company’s fundamentals, you can get a more complete picture of its financial health and future prospects.
This is important stock market wisdom because a company’s share price can be influenced by many factors, including short-term market conditions, news events, and investor sentiment. If you focus only on the share price, you may miss important indicators of a company’s health and prospects. By focusing on the fundamentals, you can get a more complete picture of a company and make more informed investment decisions.
