The most theoretical basis of the concept of fundamentals is that securities have intrinsic value, and we can judge whether securities are suitable for buying or selling by focusing on the factors affecting securities prices.
Factors affecting fundamentals
1, economic factors
Economic cycle, national financial situation, financial environment, balance of payments, changes in industry economic status, and adjustment of national exchange rate will all affect the fundamentals of some stocks.
2. Political factors
The adjustment or change of national policies, international political turmoil, trade wars between countries or direct military conflicts will all lead to fluctuations in the fundamentals of stock prices.
3, the company's own factors
The "intrinsic value" of the company can ultimately determine where the stock price can reach, and the fluctuation of the stock price also fluctuates around the "intrinsic value" of the company. "Intrinsic value" mainly depends on the operating performance of the issuing company, credit rating and related dividends, development prospects, expected stock returns, etc. To fully understand the basic situation of the company, as well as the company's senior leaders, financial situation, future development planning and implementation.
4. Industry factors
Changes in the status of the industry in the national economy, the development prospects and potential of the industry, the influence of emerging industries, and changes in the status, operating performance, operating conditions and capital structure of listed companies in the industry.
5. Market factors
The trend of investors, the intention and manipulation of bankers, the cooperation or mutual shareholding between companies, the increase and decrease of credit transactions and futures transactions, the arbitrage behavior of speculators, the way and amount of capital increase of companies, etc. , it will also affect the fundamentals of the stock price.