Fundamental analysis determines a stock's intrinsic value by analyzing the business behind the stock.

Key Metrics

MetricWhat It ShowsGood Value
P/E RatioPrice vs earnings<15 (value), >25 (growth)
P/B RatioPrice vs book value<1.5
ROEProfitability>15%
Debt/EquityLeverage<1.0
Free Cash FlowCash generationPositive, growing

Applied to Asian Markets

Fundamental analysis in Asia must account for:

  • Chaebol structure (Korea): complex cross-holdings
  • SOE vs private (China): state-owned enterprises have different incentives
  • Promoter holdings (India): founding family stakes affect governance
  • Cross-shareholdings (Japan): keiretsu relationships

Where to Find Data

Annual reports, stock exchange filings, and financial data providers. Most Asian exchanges provide free English filings for major companies.