The fundamentals of a stock are the factors thought to contribute to the underlying company's value or worth as a business.

Fundamentals can include both quantitative and qualitative data (such as cash flow and debt-to-equity ratios).

Fundamental analysis is frequently used by investors and institutions to get a more accurate picture of a company's intrinsic value. In this context, intrinsic value refers to a company's "true" worth (rather than market value) based on the numerous factors that contribute to its health and success.

Investors who prefer fundamental analysis to technical analysis (discussed further below) believe that the stock price of a company is not always an accurate indicator of its value.

Stock fundamentals are key financial metrics and qualitative factors that provide insight into the overall health and performance of a company, influencing its stock value. These include financial statements like the income statement, balance sheet, and cash flow statement, which reveal a company's revenue, expenses, assets, liabilities, and cash position. Ratios such as price-to-earnings (P/E), earnings per share (EPS), and debt-to-equity are fundamental indicators that help investors assess a stock's valuation and financial health. Additionally, qualitative factors like a company's management, industry position, and competitive advantages contribute to understanding its long-term potential. Analyzing stock fundamentals is essential for investors to make informed decisions, as they form the basis for evaluating a company's intrinsic value and potential for future growth.