What type of analysis is heavily reliant on historical financial statements?

Fundamental analysis is centered around evaluating the intrinsic value of a security by examining various financial and economic factors, and it heavily relies on historical financial statements. This type of analysis involves assessing a company's financial health by looking at key documents such as the balance sheet, income statement, and cash flow statement. Analysts use these historical metrics to predict future performance, value a company's stock, and make investment decisions.

Fundamental analysts pay close attention to earnings, revenue growth, profit margins, and other indicators that reflect a company's past performance and ongoing financial condition. This data is foundational in determining the potential for future growth and profitability, which are essential aspects of stock valuation.

The other analysis types listed focus on different aspects. Technical analysis is based on price movements and trading volume, often using charts and patterns rather than financial statements. Quantitative analysis employs mathematical models to analyze data, while sentiment analysis gauges the overall mood or sentiment of investors, usually through news and social media trends rather than historical financial data.