The type of analysis that uses financial statements to assess valuation of current market price is
A)valuation analysis.
B)efficient market analysis.
C)fundamental analysis.
D)technical analysis.

Question

Quizplus · Accepted Answer

Fundamental analysis uses financial statements and other qualitative and quantitative factors to assess the intrinsic value of a company and determine if a current market price is overvalued or undervalued. Valuation analysis may be a part of fundamental analysis, but it is not a broad enough term to fully describe the analysis of financial statements. Efficient market analysis and technical analysis do not rely primarily on financial statements to assess valuation.

The Type of Analysis That Uses Financial Statements to Assess