On the appropriate objective of research on fundamental analysis Fundamental analysis involves a study of a firm's current activities and prospects for purposes of estimating its value. The task involves assess ments of factors (e.g., product demand, corporate strategy, industry out look) that go well beyond accounting data. Nevertheless, interpretation of financial statement data is central to the task. Accounting research can enhance our understanding of fundamental analysis by clarifying the rela tion between financial statement data and firm value.