The assessment of intrinsic value of security through analyzing of various factors of micro and macro economics is called fundamental security analysis or economic analysis. Its ultimate goal is the quantification of the intrinsic value of the security. By comparing this intrinsic value with the current market price, decisions can be made about investments. It focuses on predicting the correct price /true value of a security unlike technical analysis that focuses on the price movements of a security. If we know the correct price, we can make an informed decision about investing, based upon the fact whether it is fairly valued, undervalued or overvalued. It contains the three following components, its three main parts: company analysis, economic analysis and industry analysis

Reference:

Li, Xiaotong, and Qianyao Xue. “An economic analysis of information security investment decision making for substitutable enterprises.” Managerial and Decision Economics (2021).