Estimating economic quality and value — for companies and for networks.
Fundamental analysis evaluates the economic characteristics of an asset. For a stock, it examines the company, industry, financial statements, cash flows, competitive position, management, and valuation. For crypto, it examines network usage, protocol utility, token supply, incentives, security, governance, adoption, and value capture.
| Concept | Explanation | |---|---| | Economic quality | How effectively the business or network creates durable value. | | Growth | How rapidly revenue, cash flow, users, transactions, or other relevant activity is expanding. | | Profitability | How much economic benefit remains after costs and capital requirements. | | Financial strength | Ability to meet obligations and survive adverse conditions. | | Valuation | Market price compared with a reasoned estimate or comparable measure of value. |
Key idea: Fundamental analysis asks whether the asset is economically attractive; technical analysis asks how the market is behaving.