Lesson 3, Topic 1
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Topic 1: Company Financial Statements

ATH July 21, 2025
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Fundamental analysis involves evaluating a company’s financial health through documents like the income statement, balance sheet, and cash flow statement. These statements reveal profitability, assets and liabilities, and operational efficiency.

Key metrics include:

  • Earnings Per Share (EPS)
  • Price-to-Earnings (P/E) Ratio
  • Return on Equity (ROE)
  • Debt-to-Equity Ratio

Investors look at revenue growth, net income, and earnings reports to determine whether a stock is undervalued or overvalued.