Fundamental analysis is basically done for long term and midterm investment which is also called as delivery based investment or trading. The main important aim behind is to study and understand the company in which you are planning to invest your hard earned money and get excellent returns.
These are the most
popular tools of fundamental analysis. They focus on earnings,
growth, and value in the market. They are 
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitabilityWhen calculating, it is more accurate to use a weighted average number of shares .outstanding over the reporting term, because the number of shares outstanding can change over time. However, data sources sometimes simplify the calculation by using the number of shares outstanding at the end of the period.
A valuation ratio of a company's current share price compared to its per-share earnings. Also sometimes known as "price multiple" or "earnings multiple". In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself.It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.
Price/Earnings to Growth - PEG Ratio
A ratio used to determine a stock's value while taking into account earnings growth. PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued.
Price-To-Book Ratio - P/B Ratiohref="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhU_WOKlKfczoC7TXlv1Xme7Dc3UNV4TEMTUk4WHMbp8og4XZQuBggpEAYNXfjPYxJQwBfirzBgKOzjh_Tt6rzC8hyphenhyphenZlIhhQ9mEAgO5BBixzTtKzsXD5vsVZlKGkNKshjoRcLH6GTGhfro0/s1600/PRICE+TO+EQUITY+RATIO.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;">
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. Also known as the "price-equity ratio".
Dividend Payout Ratio
Dividend Yield
Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt the company is using to finance its assets.
Return on Equity – ROE
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. Also known as the "price-equity ratio".
The percentage of earnings paid to shareholders in dividends. The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.
Dividend Yield
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt the company is using to finance its assets.
The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
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