Fundamental analysis aims to forecast securities’ prices using historical and present
economic data. In the case of a stock, such data include figures from the company’s financial
statements, such as assets, liabilities, and book values of equities, along with various ratios
derived from those figures such as Price/Earnings multiples (P/E ratio) [1]. Less quantitative
analysis on the company’s management, competitive advantages, and its markets are also
involved. Since the major objective of performing fundamental analysis is to value a company’s
stock and predict its price evolution, the analysis tells people to buy the stock when it is
undervalued by the market and to sell when it is overvalued.