What fundamental analysis in the stock market is trying to achieve, is finding out the true value of a stock, which then can be compared with the value it is being traded with on stock markets and therefore finding out whether the stock on the market is undervalued or not. Finding out the true value can be done by various methods with basically the same principle. The principle is that a company is worth all of its future profits added together. These future profits also have to be discounted to their present value. This principle goes along well with the theory that a business is all about profits and nothing else.