Fundamental Analysis Guide for Smarter Stock Investing
At Market Insights Hub, we offer data-rich tools that make fundamental analysis fast and practical. Use this guide to understand essential metrics and learn how to apply them in the Stock Screener to make more informed, long-term decisions.
What Is Fundamental Analysis?
Fundamental analysis is the process of evaluating a company’s financial health, performance, and growth potential to estimate intrinsic value. By examining metrics like price-to-earnings (P/E), dividend yield, earnings and revenue growth, cash flow, and profitability, investors can identify undervalued or overvalued stocks and build conviction for long-term investing.
Our Fundamental Analysis tools bring essential data and insights to your fingertips, making a complex process simple and efficient.
Key Metrics for Analyzing Stocks
With Market Insights Hub, you can analyze a range of financial metrics to assess a company’s strength and potential. Here are core metrics referenced throughout this guide:
- P/E Ratio: Compares price to earnings per share. Useful for relative valuation. Direction matters—compare within sectors.
- Dividend Yield: Income potential relative to price. Consider payout ratio and dividend history alongside yield.
- Growth Indicators: Revenue and EPS growth rates help surface durable growth. Cross-check with margins and reinvestment (e.g., capex).
- PEGY: PEG adjusted by dividend yield, capturing growth and income together. Use only valid values (exclude null/NaN or ≤ 0).
- Quality & Profitability: Margin stability, ROIC/ROE, and free cash flow trends help assess business quality.
Tip: Start with broad valuation filters, then refine by growth, quality, and dividend characteristics to match your strategy.
How to Use the Stock Screener
The screener lets you filter by sector, valuation, growth, and performance metrics to quickly identify opportunities. Example workflows:
- Value Focus: Filter for reasonable P/E within a sector, positive PEGY, and stable margins.
- Growth Focus: Screen for strong revenue/EPS growth and reinvestment, then compare valuation multiples.
- Dividend Focus: Set minimum dividend yield and evaluate payout ratio and cash flow coverage.
Strategy Playbooks
Value Investing
- Within-sector P/E comparison, PEGY > 0
- Margin stability and FCF conversion
- Look for improving fundamentals
Growth Investing
- High revenue and EPS growth consistency
- Reinvestment (capex/R&D) with path to margins
- Valuation discipline vs. peers
Dividend Investing
- Yield threshold with sustainable payout
- FCF coverage and dividend history
- Sector-appropriate valuations
Quality Factor
- ROIC/ROE with low earnings volatility
- Balance sheet strength
- Defensible competitive advantages
FAQ
What is fundamental analysis?
It evaluates a company's financial health and intrinsic value using metrics like P/E, growth, cash flow, and dividends.
How do I find undervalued stocks?
Combine valuation filters (P/E, P/B, PEGY > 0) with quality and growth indicators, and compare within sector peers.
What does PEGY mean?
PEGY adjusts PEG by dividend yield to account for both growth and income. Values that are null/NaN or ≤ 0 are typically invalid for analysis.