Analysts

• Close examination of numerical values is used in fundamental company analysis.business image by peter Hires Images from Fotolia.com
  
  Anyone can perform a fundamental company analysis; however, those who are more likely to do so professionally are accountants, financial planners, and loan officers, among others in the field of finance. In some finance professions, qualification to perform fundamental analysis requires the completion of the Series 86 Research Analyst Qualification Examination according to the Financial Industry Regulatory Authority (FINRA), and the National Association of Securities Dealers (NASD).
  
  

Financial

• Fundamental company analysis is often quantitative in the sense that it utilizes a number of financial formulas, equations and statistical techniques. The Capital Asset Pricing Model (CAPM) is an example of a fundamental company analysis that measures company value against risk and forecasted profits. In a Kairos Commodities report by Tom Bundgaard, a chief financial analyst, it is noted that fundamental analysis may not include all variables. This is because fundamental analysis is not an exact science, and partial analysis can provide a reasonable probability of certainty within efficiency parameters of business resources.
  
  

Economic

• Econometrics is also used in fundamental company analysis. For example, an economic fundamental company analysis may look at a statistical value called beta. The beta value measures correlation between two variables such as profit and gross domestic product (GDP). If a company has experienced a larger than average profit margin due to economic conditions, the beta statistic is useful in the measurement of that relationship. A financial analyst can then determine if a company's profit has to do with economic conditions, and if those earnings are sustainable.
  
  

Market

• How a company allocates capital affects profitability.Grafica 7 image by Maximo Sanz from Fotolia.com
  
  The use of market variables such as share price performance in financial assessment is an additional example of fundamental company analysis. In this case, market variables provide an external measure of the company's ability to generate revenue and retain earnings for investors. Examples of market variables used in fundamental company analysis are the price-earnings ratio, also referred to as the P/E ratio. The P/E ratio is a reflection of how much investors expect the company's earnings to grow.
  
  

Business

• Business competitiveness is measured by corporate fundamental analysis.Business competition image by Christophe Schmid from Fotolia.com
  
  The industrial sector a business operates within, and how well that business measurably operates in relation to similar businesses, is also a method of fundamental company analysis. To illustrate, if two similarly sized companies with almost equal annual revenues have different earnings, then one of those companies is making better use of its operational resources. This is referred to as operating margin and is measured by dividing operating income by sales revenue. Operating income is found on a company's income statement, and is measured by deducting day-to-day expenses from business sales.