What does fundamental analysis primarily evaluate?

Fundamental analysis primarily evaluates a company's financial statements and market conditions because it aims to assess the overall health and value of a company. This analytical method involves examining key financial documents such as the income statement, balance sheet, and cash flow statement, which provide insight into the company's revenue generation, profitability, and financial stability.

In addition to financial statements, fundamental analysis considers market conditions such as industry performance, economic factors, and competitive positioning. By integrating these elements, investors can form a comprehensive view of a company's potential for growth and its intrinsic value, which aids in making informed investment decisions. This approach is foundational for determining whether a company's stock is undervalued or overvalued based on its true financial performance and the economic landscape in which it operates.

The other choices focus on aspects like marketing, social media, and employee satisfaction, which, while they can impact a company's success, are not the primary focus of fundamental analysis. These areas may provide relevant insights for specific contexts but do not constitute the core of fundamental assessment in the finance and investment landscape.