Investing in stocks isn’t just about picking big brand names or following the hype—it’s about understanding the business behind the ticker symbol. That’s where fundamental analysis comes in. It allows investors to evaluate a company’s intrinsic value, financial health, and long-term potential. And now, thanks to AI tools like ChatGPT, anyone can conduct meaningful analysis with the right set of prompts.
In this article, we’ll share 10 essential ChatGPT prompts that simplify the process of evaluating any stock using fundamental analysis. Whether you’re a retail investor, student, or financial blogger, these prompts can act as your virtual research assistant, helping you decode complex financial information quickly and clearly.
Let’s get started!
🔢 Prompt 1: “Provide a fundamental analysis of [Company Name] with key financial ratios”
This all-in-one prompt gives you a snapshot of the company’s financial performance.
Example:
“Provide a fundamental analysis of Infosys with P/E ratio, EPS, ROE, and debt-to-equity ratio.”
You’ll get:
- Profitability metrics
- Leverage and liquidity ratios
- Valuation comparisons to peers
🌐 Prompt 2: “Explain [Company Name]’s business model and revenue sources”
Before investing, it’s vital to know how the company makes money and if the model is sustainable.
Example:
“Explain Tata Motors’ business model and key revenue sources.”
You’ll understand:
- The company’s core products/services
- Its main markets and customers
- Potential risks and scalability
📊 Prompt 3: “Summarize the last 5 years of revenue and net profit growth for [Company Name]”
Past performance can hint at future potential. This prompt helps you track a company’s growth trajectory.
Example:
“Summarize the last 5 years of revenue and net profit for Hindustan Unilever.”
You’ll get:
- Year-wise financial data
- Growth trends
- Signals of consistency or volatility
📈 Prompt 4: “Analyze [Company Name]’s balance sheet: focus on debt, cash reserves, and asset quality”
A company may look profitable but still be financially fragile. This prompt digs into the balance sheet.
Example:
“Analyze the balance sheet of Adani Ports with focus on total debt, cash reserves, and fixed assets.”
You’ll understand:
- Financial stability
- Liquidity status
- Asset-liability management
⚖️ Prompt 5: “Evaluate the valuation of [Company Name] using P/E, P/B, and PEG ratios”
Is the stock overvalued or undervalued? Use this prompt to find out.
Example:
“Evaluate the valuation of HDFC Bank using P/E, P/B, and PEG ratios.”
ChatGPT will return:
- Ratio interpretations
- Sector benchmarks
- Whether the stock is fairly priced
🌐 Prompt 6: “Compare [Company A] and [Company B] on financial performance and market share”
Choosing between two stocks? This side-by-side analysis makes it easier.
Example:
“Compare Infosys and Wipro on revenue, net income, ROE, and market share.”
You’ll receive:
- A tabular or paragraph comparison
- Strengths and weaknesses of each
- Strategic advantages in the sector
📆 Prompt 7: “What is the historical dividend trend for [Company Name] and its payout ratio?”
For dividend investors, this is gold.
Example:
“What is the historical dividend trend for ITC and what is its current payout ratio?”
You’ll discover:
- Dividend consistency
- Yield trends
- Earnings vs. dividend distribution
⚡ Prompt 8: “What are the major risks and challenges facing [Company Name] today?”
Even the best company has risks. This prompt reveals them.
Example:
“What are the current risks and threats facing Paytm as a business?”
Includes:
- Industry-related risks
- Regulatory hurdles
- Competitive pressures
🔎 Prompt 9: “What are analysts saying about [Company Name]? Include recent rating and target price”
Use the crowd’s wisdom (with caution).
Example:
“What is the current analyst consensus for Larsen & Toubro? Include average price target.”
Expect:
- Buy/Hold/Sell ratings
- Price targets
- Institutional opinions
🌟 Prompt 10: “Does [Company Name] have a competitive moat? Evaluate using Porter’s Five Forces”
A long-term investor’s dream prompt. It digs into the company’s durable advantages.
Example:
“Does Asian Paints have a competitive moat? Analyze using Porter’s Five Forces.”
Breakdown includes:
- Bargaining power of suppliers/customers
- Threat of substitutes/new entrants
- Industry rivalry
Bonus: Stack These Prompts Like a Pro
Want a 360-degree view of a company? Stack these prompts in this order:
- Prompt 2: Business model
- Prompt 3: Revenue/profit trend
- Prompt 4: Balance sheet health
- Prompt 5: Valuation
- Prompt 10: Competitive moat
In under 10 minutes, ChatGPT will deliver an analysis that would take hours manually!
📈 Conclusion: Smarter Research with AI
Fundamental stock analysis isn’t just for Wall Street analysts anymore. With AI tools like ChatGPT and the right prompts, you can do detailed company research from your laptop or phone—even if you’re just starting out.
By using these 10 prompts, you’ll:
- Cut through financial jargon
- Identify strong businesses
- Avoid risky bets
So next time you hear about a “hot stock,” don’t FOMO. Open ChatGPT, run these prompts, and invest with clarity and confidence.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Always consult with a certified financial advisor before making any investment decisions.