Methods of the fundamental analysis in the investment decision making

Today, in the situation of market prices volatile, traders and analytics from developed and developing countries should clearly understand the market trends, and analyze, which shares are potentially beneficial, and which are not. Every stock market player should determine the market strategy, and to achieve it, he can use a huge number of analyses. All of them are divided on the technical analyses and the fundamental analysis. The essence of the technical analysis is to predict the future price changes, based on the past price changes. The fundamental analysis is the full analysis of the various indicators of financial and economic activities at different levels in order to determine the investment attractiveness of the shares and the calculation of intrinsic value.This paper examines the theoretical and practical bases of the fundamental analysis. Also this investigation presents the analysis of the fundamental analysis tools, and the verification of the effectiveness of applying this method on the Russian stock exchange market.In this work, for the verification the effectiveness of applying this method to calculate the intrinsic value of the Russian airline companies was chosen the following companies: “Aeroflot”, “Transaero”, “UTair” and “S7 Airlines”. The time frame is: from 2009 to 2013.The investigation was based on the actual information sources.It was found, that the fundamental analysis could be used as a method of the major company evaluation in a long-term perspective. Also the fundamental analysis can be an essential part of determining the long-term investment strategy.Finally, according to the study, the conclusion about the consistency of methods of calculating the intrinsic value of the Russian airline companies was made.