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What is Top Down Fundamental Analysis?

Updated: 9/14/2023
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14y ago

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Top down: you look at the market as a whole (principal economic factors and data) them you narrow down until your industry etc. etc.

Fundamental: you look at the principal ratios of a company compared to the industry. You look at the level of debt, profitability etc. etc. Basically you look at how the company performs in terms of financial performance. Fundamental analysis is the opposite of technical analysis which is just looking at trends and mathematical expression to forecast what is going to happen with a stock.


Top down fundamental analysis is just the 2 combined.

hope this will help !

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