põhianalüüs

Põhianalüüs is an Estonian term that translates to "basic analysis" or "fundamental analysis" in English. It refers to a method of evaluating a security, such as a stock or bond, by attempting to measure its intrinsic value. This intrinsic value is determined by examining related economic, financial, and other qualitative and quantitative factors. Fundamental analysts aim to understand the underlying health and potential of a company or asset, rather than relying solely on market trends or price movements.

The core of põhianalüüs involves studying a company's financial statements, including its balance sheet, income statement, and cash flow statement. Analysts look at key financial ratios and metrics to assess profitability, liquidity, solvency, and efficiency. Beyond the numbers, põhianalüüs also considers broader economic conditions, industry trends, competitive landscape, and management quality. The goal is to identify whether a security is currently undervalued or overvalued by the market, and to forecast its future price performance based on this assessment. Investors employing põhianalüüs believe that market prices will eventually converge with the intrinsic value of the asset.