2 September 2025 – Using Key Metrics in Fundamental Analysis

In trading or investment, timing when to Buy and Sell is the focus for traders and investors. The stockmarket or the market of stocks comprised of newly listed company to companies that have been around for decades. For the newly listed or younger companies, investors are on the lookout for high earnings growth.

We tend to define an investor as someone who uses fundamental analysis and their investment timeframe is much longer terms like many years. They are likely to be looking financially healthy companies with healthy revenue and earnings growth quarterly and annually. Beyond annual growth, the company should be in a sector that is growing. Beyond that, future guidance will be such there will be growth for many years ahead.

Indices/Key Metrics for fundamental analysis — Chart 1 – Key metrics for fundamental analysis

For more mature companies, investors will be looking for value and dividends payout. When companies are established and revenue growth is minimal, any profits tends to be distributed as dividends rather than re-invested into company expansion.