A method of security valuation which involves examining the company's financials and operations, especiallysales,earnings,growthpotential,assets,debt,management,products, and competition.

Fundamental analysis takes into consideration only those variables that are directly related to the company itself, rather than the overall state of the market or technical analysis data. Fundamental analysis is an alternative to technical analysis which only looks at the price.
Factors affecting Fundamental Analysis:

Quantitative factors - The factors which can be measured in numeric terms like net profit growth,revenue growth, equity:debt ratio, EPS, P/E Ratio etc. Qualitative factors - Quality of management of the company, brand value of the company etc.