Fundamental Equity Analysis

Hi,
I wouldnt have said that growth shares cannot be selected using fundamental analysis. FA is basically looking at the fundamentals of a share and deciding whether you think its price represents good value. As you say, a value stock looks good value on one basis, and a good fundamental analyst could select between value shares using FA. But a growth share might also look good value based on another basis, and a fundamental analyst would select between the growth shares using FA.
The "value" part of the title can be off-putting. Just because a share ticks all the "growth" boxes, doesnt mean that it cannot represent good value at its current price. A fundamental analyst would not always use 'low PE' 'high dividend yield' as the fundamentals for selecting a share. High growth is also a fundamental is you see what I mean.
Hope this helps.

 

"Value investing" -
buying securities that an investor believes are underpriced by some form of fundamental analysis. (ActEd, 09/2020) (This seems the exact same to me as what fundamental analysis is?)

Sounds OK to me. Value investing is investing money in shares that have "value" qualities. These are typically low PE, high dividend yield and a high accounting or book value compared to its market cap. So if BP is on a 14 times PE, has a yield of 5% and has an accounting value that is almost as high as its market cap, then it may be a value stock. Value investors weight such stocks very heavily. Some may even only select from these shares.

Growth investing -
Growth investors look to invest in companies that the investor expects to grow faster than average when compared to the market or to the industry in which the company operates. growth investors believe that these stocks will grow more rapidly or will be subject to positive earnings revisions in the near term

This sounds OK too. So Amazon may be on 140 times PE ratio, and have a yield of less than 1%, but if the earnings are going to grow at 25% pa for 10 years, the stock may perform well. Growth investors would weight heavily to these stocks.

FA - Calculate the intrinsic value based on company fundamentals, if price is lower than intrinsic value this is a good proposition to purchase.

This sounds OK. Both Amazon and BP could be described as having a price that is lower than some "intrinsic" value, and seem like a good proposition. It depends what you believe as a fundamental analyst.
If fundamental analysts are looking for a price that is cheap relative to current profits and dividends then they will tend towards value stocks. If they look for prices that are cheap with respect to future prospects then they will tend to growth stocks. But fundamental analysis is about looking at a company's fundamentals to decide which ones to pick (as opposed to technical analysis which looks at past price behaviour). Value stocks and growth stocks are just two ways of subdividing the universe of stocks.
I think that the easiest form of fundamental analysis will tend to lead you towards value stocks though.

 

Dividend discount model (DDM) is maybe one tool that can be used in fundamental analysis. It uses growth of dividends as an input, which would come from the analysts assessment of the company fundamentals, so its (sort of) linked to fundamental analysis. Whether it favours value or growth I couldnt say. There is no reason why a growth share could not turn out to be good value relative to its share price, if the DDM uses a high enough growth assumption. And there is no reason why a value stock might not look good value. (At the moment for example, value stocks give 4% yield or more, discount rates are 1.5%, so even using 0% growth on a value stock is going to give quite a high value. )