What type of analysis examines future prospects to determine a company's value?

Fundamental analysis is a method used to evaluate a company's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors. This type of analysis focuses on understanding a company's overall health, growth potential, and market position by analyzing its financial statements, management, market competition, and macroeconomic conditions. By assessing these elements, investors can make informed decisions about the company's future prospects, which directly influences its stock value.

For instance, fundamental analysis involves looking at earnings reports, revenue growth, profit margins, and return on equity, among other factors. It helps investors determine whether a stock is undervalued or overvalued based on projected future performance. This forward-looking aspect distinguishes it from other types of analysis that might focus on historical performance or market patterns.

In contrast, other methods like technical analysis predominantly rely on historical price and volume data to forecast price movements, while risk analysis assesses the probability of certain risks affecting potential outcomes. Market analysis focuses on overall market trends and the economic environment but does not delve deeply into an individual company's financial health or future prospects like fundamental analysis does.