Fundamental analysis as a business valuation technique

According to a U.S. News Business article by guest writer Jim Wang, one of the most basic methods of business valuation is fundamental analysis. Unlike technical analysis, which primarily considers the numerical data associated with an investment, fundamental analysis allows the primary aspects of an investment to be evaluated. When conducting a fundamental analysis of a company, Wang recommends looking into its business model, profit margins, potential for growth, management and place as an industry leader, as well as whether it achieves regular profits. Fundamental analysis can also be used to value commodities, real estate, bonds and currency. Additionally, it can be implemented as a way to analyze the pros and cons of selling an investment, which may include loss of market share and - in the case of stock - a changing company power structure. One company that uses fundamental analysis is Goldman Sachs Asset Management, which applies the method to asset allocation and stock selection, according to a Seeking Alpha article about the company's investment strategy.