Determining a stock’s fundamental value isn’t just about its current numbers — it’s about what is expected to change over time. In this video, we start with a simple analogy: when building a house, the materials give it a base value, but the fundamental value comes from other factors. Similarly, with stocks, ratios like P/E and P/S can be useful, but the real drivers are changes in sales, margins, and product offerings over time. In the short and medium term, however, stock prices are often driven by supply and demand.