This chapter describes fundamental analysis as one of the methods to analyze a security for best price level at which to buy or sell. It discusses some of the pivotal analysis utilized for stock valuation. Fundamental analysis seeks to find an undervalued security to buy or an overvalued security to sell. As per the practice of fundamental analysis, markets can misprice a security in the short run but then find and correct it to its fair value in the long run. By studying financial reports, investors ascertain information about a company's earnings, income, and cash flow. However, as important as these three data points are, they fail to reflect the true financial health of a company.