Very little prior research has been framed as a contribution to fundamental analysis; indeed, the very words fundamental analysis were out of vogue for years (Penman
1992). Nevertheless, a large fraction of capital markets research on the relation between stock prices and accounting data could be reframed as an attempt to enrich our understanding of funda mental analysis. Viewed from that perspective, the traditional research can then be contrasted with the approach supported by Ohlson (1995) and by
Feltham and Ohlson (1995).