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**Fundamental analysis** is the evaluation of a company's financial health and business prospects. Fundamental analysts look at factors like revenue, earnings, debt, and the overall industry. They use this information to determine the intrinsic value of a company's stock. It's based on the idea that the price of a stock should reflect its underlying value. Fundamental analysts consider factors like financial statements, industry trends, and management quality to assess a company's potential. This analysis is especially useful for long-term investing, as it helps determine the value and potential of a company. Some common tools used in fundamental analysis include financial ratios like the price-to-earnings ratio (P/E) and the debt-to-equity ratio.