Fundamental Analysis of Stocks: Everything You Need to Know
What are the key fundamental metrics and where can you find them?
If you’re starting fundamental analysis on a company from scratch, then the best place to start is often the annual report, or alternatively the latest full-year results. The CEO’s letter to shareholders is commonly an underrated piece of data as it gives personal insight into the positives and drawbacks of the investment case.
Within an annual report, there should also be a business description section, which explains the company’s main products, target markets and competitive advantages, alongside the Management’s Discussion and Analysis section, which is all about financial performance, revenue trends and cash flows.
Financial statements, often most revealingly…
