Fundamental analysis is a method of evaluating a security in an attempt to assess its intrinsic value, by examining related economic, financial, and other qualitative and quantitative factors. Fundamental analysts study anything that can affect the security’s value, including macroeconomic factors (e.g. economy and industry conditions) and microeconomic factors (e.g. financial conditions and company management). The end goal of fundamental analysis is to produce a quantitative value that an investor can compare with a security’s current price, thus indicating whether the security is undervalued or overvalued.
Yes it does. This is the most basic method of trading, where the finance and future of a company and analyse and predicted. This method helps put a value to the company and therefore predict whether the price will move up or down. This allow the trader to act before the market therefore making this strategy more profitable.
All investment banks uses fundamental analysis. Some retail trader uses it too. The benefit is that this method is most reliable but do require a lot of research, therefore time. The profitability is dependent on the accuracy of the analysis.