It is a very common idea that Fundamental analysis looks at the intrinsic value of a stock, but if I were to look at the stock market right now, I just see the movement of the price of the stock, volume, crowd behavior, and etc. I know technical analysis can use these information to find entry points and all, but I was hoping to approach it in a Fundamental analysis approach.
When I do look at financial statements, I just see the balance sheets or income statements, but that's about how much I know about how the company is performing in a financial perspective because I do not work at that company. So how do I use these financial statements (or other references) to actually say that, for example, $23.43, the current market price, is most likely below its intrinsic value, and buying it will most likely earn me profits. People will most likely financial ratios to gauge the company, but how do you use them to decide? What are all the factors or ratios that you will look at the come to a decision?
Most people will just give their thoughts and open ended answers, but if possible, a clear and basic example on the matter, until a decision whether to buy or not has been made, is preferred. Because if it's all open ended, then I feel there is a lack of understanding and I feel like it is similar to gambling