Stock analysis is the systematic evaluation of a company's financial health, business model, and market position to determine whether its shares represent a sound investment opportunity. The process involves examining financial statements, key metrics like P/E ratios and debt levels, competitive advantages, and management quality to assess a stock's intrinsic value relative to its current price. Effective stock analysis combines quantitative data with qualitative judgment to help investors make informed decisions based on their own research and risk tolerance.
Key Takeaways
- Stock analysis evaluates both quantitative metrics (earnings, revenue, debt) and qualitative factors (management, competitive position) to assess investment potential
- Fundamental analysis examines company financials and intrinsic value, while technical analysis focuses on price patterns and trading volume
- Essential financial statements include the income statement, balance sheet, and cash flow statement—each revealing different aspects of company health
- Key valuation metrics like P/E ratio (typically 15-25 for most sectors), debt-to-equity ratio, and free cash flow provide comparison benchmarks
- Sustainable competitive advantages (economic moats) and experienced management teams often matter more than short-term earnings fluctuations
- Common analysis mistakes include overreliance on single metrics, ignoring industry context, and making decisions based on emotion rather than data
Table of Contents
- What Is Stock Analysis?
- Fundamental vs Technical Analysis
- How to Research Stocks Before Buying
- Key Metrics to Analyze
- Reading Financial Statements
- Evaluating Management and Moats
- Common Analysis Mistakes
- Building Your Analysis Framework
- Frequently Asked Questions
- Conclusion
What Is Stock Analysis?
Stock analysis is the process of evaluating a company's stock to determine whether it's appropriately priced, overvalued, or undervalued based on available information. It combines financial data, business context, and market conditions to form a reasoned assessment of investment potential. This research process helps investors understand what they're buying beyond just a ticker symbol and price.
Stock Analysis: The systematic evaluation of a company's financial performance, business model, competitive position, and market valuation to assess its potential as an investment. It forms the foundation of informed investment decisions.
The practice draws from multiple disciplines. You examine accounting statements to understand profitability. You study industry dynamics to assess competitive threats. You evaluate management track records to gauge execution capability. You compare valuation metrics to historical norms and peer companies.
Stock analysis for beginners starts with basic questions: What does this company do? How does it make money? Is it profitable? More advanced equity research digs into capital allocation efficiency, competitive moat durability, and scenario analysis under different economic conditions.
The goal isn't to predict the future with certainty—that's impossible. Rather, it's to make probabilistic assessments based on evidence. A thorough company analysis reveals both opportunities and risks, helping you decide whether a stock fits your investment criteria and risk tolerance.
Fundamental vs Technical Analysis
Fundamental analysis evaluates a company's intrinsic value by examining financial statements, business operations, industry position, and economic conditions. Technical analysis, by contrast, studies price charts, trading volume, and market patterns to identify trends and trading opportunities. These represent different philosophies about what drives stock prices.
Aspect Fundamental Analysis Technical Analysis Primary Focus Company value and financial health Price patterns and market psychology Time Horizon Long-term (months to years) Short to medium-term (days to months) Key Data Sources Financial statements, earnings reports, industry data Price charts, volume data, moving averages Core Assumption Price eventually reflects true value Price movements follow identifiable patterns Best For Buy-and-hold investors, value investors Active traders, momentum investors
Fundamental analysis asks: "What should this stock be worth?" You calculate intrinsic value based on earnings power, asset values, growth prospects, and risk factors. If a stock trades at $50 but your analysis suggests it's worth $75, that gap represents potential upside.
Technical analysis asks: "What is the market telling us through price action?" Practitioners believe historical price patterns repeat because human psychology remains consistent. They use tools like support and resistance levels, trend lines, and indicators like RSI (Relative Strength Index) to time entries and exits.
Intrinsic Value: The true underlying worth of a company based on fundamental factors like earnings, assets, and growth potential, independent of its current market price. Fundamental analysts seek stocks trading below intrinsic value.
Many investors use both approaches. You might employ fundamental analysis to identify undervalued companies, then use technical analysis to time your entry when the stock shows positive momentum. Neither approach guarantees success—markets can remain irrational longer than expected, and chart patterns sometimes fail.
For most long-term investors focused on company ownership rather than trading, fundamental analysis provides the more relevant framework. It connects your investment to actual business performance rather than market sentiment fluctuations.
How to Research Stocks Before Buying
Effective stock research follows a structured process that moves from broad understanding to specific analysis. Start with the business model, progress through financial analysis, and finish with valuation and risk assessment. This systematic approach prevents you from overlooking critical factors.
Step 1: Understand the Business
Read the company's latest annual report (Form 10-K for U.S. companies). The business description section explains what the company does, its products or services, customer base, and revenue sources. Don't skip this—you can't evaluate a business you don't understand.
Ask basic questions: How does this company make money? Who are its customers? What problem does it solve? Is demand for its products growing, stable, or declining? Understanding the business model provides context for everything else.
Step 2: Examine the Financials
Pull the last three to five years of financial statements. Look for trends in revenue, profit margins, and cash flow. Growing revenue with shrinking margins might signal pricing pressure. Rising revenue with growing cash flow indicates healthy business momentum.
Compare financial metrics to industry peers. A 15% profit margin might be excellent for a retailer but mediocre for a software company. Industry context matters as much as absolute numbers.
Step 3: Assess Competitive Position
Identify the company's main competitors. What advantages does your target company have? Lower costs? Better technology? Stronger brand? Network effects? These competitive advantages determine whether the business can maintain profitability as competition intensifies.
Step 4: Evaluate Management
Review management's track record. Read past earnings call transcripts to see whether executives delivered on previous guidance. Check insider ownership—managers who own significant stock have aligned interests with shareholders.
Step 5: Determine Valuation
Calculate key valuation ratios and compare them to historical averages and peer companies. A stock might be a great company but a poor investment if you overpay. Consider multiple valuation approaches to triangulate fair value.
Step 6: Identify Risks
Every investment carries risks. Read the "Risk Factors" section in the 10-K. Consider what could go wrong: regulatory changes, technological disruption, customer concentration, competitive threats, or cyclical downturns. Understanding downside scenarios helps you size positions appropriately.
Tools like the AI Research Assistant can help answer specific research questions and pull data from financial statements, though you should verify key information from primary sources.
Key Metrics to Analyze
Stock evaluation relies on specific financial metrics that reveal different aspects of company health and valuation. These metrics provide standardized ways to compare companies and assess whether current prices make sense relative to underlying business performance.
Valuation Metrics
P/E Ratio (Price-to-Earnings): A stock's price divided by its annual earnings per share, showing how much investors pay for each dollar of profit. A P/E of 20 means you're paying $20 for $1 of annual earnings.
The P/E ratio is the most widely used valuation metric. The S&P 500's historical average P/E hovers around 15-16, though this varies by interest rate environment and growth expectations. Technology companies often trade at P/E ratios of 25-40 due to higher growth rates, while mature industrials might trade at 10-15.
P/E ratios have limitations. They don't work for unprofitable companies. Earnings can be manipulated through accounting choices. One-time charges or gains distort comparisons. That's why analysts also examine the PEG ratio (P/E divided by earnings growth rate), which adjusts for growth expectations.
Price-to-Book Ratio (P/B): Stock price divided by book value per share (assets minus liabilities). It shows what you're paying relative to the company's net asset value on paper.
Price-to-book works better for asset-heavy businesses like banks and manufacturers. A P/B below 1.0 suggests the stock trades below liquidation value, though this might reflect poor asset quality or dim prospects rather than bargain pricing.
Profitability Metrics
Profit margins reveal operational efficiency. Gross margin (revenue minus cost of goods sold, divided by revenue) shows pricing power and production efficiency. Operating margin adds overhead costs. Net margin includes all expenses, taxes, and interest.
Compare margins to competitors and historical trends. Expanding margins signal improving efficiency or pricing power. Contracting margins might indicate rising costs or competitive pressure.
Return on Equity (ROE): Net income divided by shareholder equity, measuring how efficiently a company generates profit from shareholder investments. An ROE above 15% is generally considered strong, though this varies by industry.
Financial Health Metrics
The debt-to-equity ratio measures financial leverage. Total debt divided by shareholder equity shows how much the company relies on borrowed money. Ratios above 2.0 indicate high leverage, which amplifies both gains and losses. Some industries (utilities, telecom) normally carry high debt due to stable cash flows.
The current ratio (current assets divided by current liabilities) measures short-term liquidity. A ratio above 1.5 suggests the company can comfortably meet near-term obligations. Below 1.0 might signal liquidity concerns.
Growth Metrics
Revenue growth shows top-line momentum. Compare year-over-year and quarter-over-quarter growth rates. Consistent 10-20% annual revenue growth indicates strong demand, though expectations vary by company size and maturity.
Earnings growth matters more than revenue growth over time. A company can grow revenue unprofitably, but sustainable value creation requires growing earnings. Look for earnings growth that matches or exceeds revenue growth.
Essential Metrics Checklist
- ☐ P/E ratio compared to industry average and historical range
- ☐ Revenue growth rate (3-year average)
- ☐ Net profit margin trend
- ☐ Return on equity (ROE)
- ☐ Debt-to-equity ratio
- ☐ Free cash flow trend
- ☐ Current ratio for liquidity
Reading Financial Statements
Financial statements provide the raw data for fundamental analysis. Public companies file three primary statements quarterly and annually: the income statement, balance sheet, and cash flow statement. Each reveals different aspects of financial performance, and you need all three for complete analysis.
The Income Statement
The income statement shows profitability over a specific period. It starts with revenue (also called sales or top line), subtracts various expenses, and ends with net income (or bottom line). The basic structure flows: Revenue → Cost of Goods Sold → Gross Profit → Operating Expenses → Operating Income → Interest and Taxes → Net Income.
Pay attention to revenue trends. Growing revenue indicates demand for products or services. Look at the sources—does growth come from higher volumes, price increases, or acquisitions? Organic growth usually signals healthier business momentum than acquisition-driven growth.
Examine expense categories. Cost of goods sold should grow roughly proportionally with revenue. If COGS grows faster than revenue, margins compress—possibly due to rising input costs or pricing pressure. Operating expenses include R&D, marketing, and administrative costs. Some variability is normal, but major swings warrant investigation.
Earnings Per Share (EPS): Net income divided by the number of outstanding shares, showing the profit allocated to each share. Companies report both basic EPS and diluted EPS (which accounts for stock options and convertible securities).
The Balance Sheet
The balance sheet is a snapshot of what the company owns (assets) and owes (liabilities) at a specific date. Assets minus liabilities equals shareholder equity. This statement reveals financial structure and liquidity.
Assets split into current (convertible to cash within one year) and long-term. Current assets include cash, accounts receivable, and inventory. Long-term assets include property, equipment, and intangible assets like patents or goodwill from acquisitions.
Liabilities similarly split into current and long-term. Current liabilities (payables, short-term debt) must be paid within one year. Long-term debt shows future obligations. High debt isn't automatically bad—it depends on the company's ability to service it through cash flow.
Compare assets to liabilities. A company with $500 million in assets and $400 million in liabilities has $100 million in book value (shareholder equity). That's what would theoretically remain if the company sold all assets and paid all debts, though liquidation values rarely match book values.
The Cash Flow Statement
The cash flow statement tracks actual cash moving in and out of the business. It's divided into three sections: operating activities (core business), investing activities (capital expenditures, acquisitions), and financing activities (debt, dividends, share buybacks).
Operating cash flow is the most important number here. It shows cash generated from normal business operations. Positive and growing operating cash flow indicates a healthy business. Negative operating cash flow means the company burns cash to operate—sustainable only if it's a growth investment that will pay off later.
Free Cash Flow: Operating cash flow minus capital expenditures, representing cash available for distribution to shareholders or reinvestment. It's often considered a more reliable indicator of financial health than net income because it's harder to manipulate.
Free cash flow tells you whether the company generates excess cash after maintaining and growing its business. Strong free cash flow enables dividend payments, share buybacks, debt reduction, or strategic investments without requiring external financing.
Watch for divergence between net income and cash flow. If a company reports growing earnings but shrinking cash flow, investigate why. Aggressive revenue recognition or poor cash collection might explain the gap.
Evaluating Management and Moats
Numbers tell part of the story, but qualitative factors like management quality and competitive advantages often determine long-term success. Two companies with identical financials can have vastly different futures based on strategic decisions and competitive positioning.
Assessing Management Quality
Management evaluation starts with track record. Has this team executed successfully in the past? Look at their history of meeting or exceeding guidance, capital allocation decisions, and how they've navigated challenges. Past performance doesn't guarantee future results, but a pattern of disciplined execution inspires more confidence than constant strategy shifts.
Examine capital allocation. Management decides how to use company cash: reinvest in the business, acquire other companies, pay dividends, buy back shares, or pay down debt. Smart capital allocation compounds value over time. Poor allocation destroys it.
Read earnings call transcripts and shareholder letters. Do executives communicate clearly and honestly? Do they take responsibility for failures or make excuses? Do they have realistic plans or overpromise? Candid communication about challenges suggests integrity.
Check insider ownership and compensation structure. Executives with significant personal wealth tied to stock performance have aligned interests with shareholders. Compensation heavy in stock options or performance-based equity encourages long-term thinking rather than short-term manipulation.
Understanding Economic Moats
Economic Moat: A sustainable competitive advantage that protects a company from competitors, similar to how a moat protects a castle. Strong moats allow companies to maintain pricing power and profitability over long periods.
Competitive advantages fall into several categories. Cost advantages let companies undercut competitors while maintaining margins—think Walmart's supply chain efficiency. Network effects make products more valuable as more people use them—think social media platforms or payment networks.
Brand strength allows premium pricing. Consumers pay more for Apple products or Nike shoes because they trust the brand and value its associations. This pricing power directly translates to higher margins.
Switching costs create moats when moving to a competitor involves significant expense or hassle. Enterprise software companies benefit from high switching costs—once a company integrates their tools into operations, changing vendors requires time, money, and disruption.
Regulatory barriers or patents can create temporary moats. Pharmaceutical companies enjoy patent protection for new drugs, though these moats eventually expire. Utilities hold geographic monopolies granted by regulators.
Evaluate moat durability. Technology disruption can erode seemingly strong moats. Blockbuster had network effects (more locations meant more convenience) but Netflix made that advantage irrelevant. Ask whether the moat could withstand determined competition or technological change.
Signs of Strong Management
- Consistent execution against stated goals
- Transparent communication in good times and bad
- High insider ownership (above 5%)
- Disciplined capital allocation with clear ROI thresholds
- Long-term strategic focus over quarterly earnings management
Warning Signs
- Frequent strategy changes or missed guidance
- Low insider ownership or heavy insider selling
- Excessive CEO compensation relative to performance
- Aggressive accounting or frequent restatements
- Lack of clear succession planning
Common Analysis Mistakes
Even experienced investors fall into predictable traps when analyzing stocks. Recognizing these common mistakes helps you develop better research habits and avoid costly errors.
Overrelying on Single Metrics
A low P/E ratio doesn't automatically signal a bargain. The stock might be cheap for good reason—declining business, poor management, or obsolete products. Value traps look statistically cheap but continue falling because underlying problems persist. Always examine multiple metrics and understand the context behind the numbers.
Ignoring Industry Context
A 5% profit margin is terrible for a software company (where 20-30% is normal) but acceptable for a grocery chain (where 2-3% is typical). Comparing metrics across different industries produces meaningless conclusions. Always benchmark against relevant peers operating under similar economic conditions.
Confusing Story with Analysis
Compelling narratives feel persuasive. "Electric vehicles will transform transportation" might be true, but that doesn't mean every EV company is a good investment. Separate the industry thesis from individual company analysis. A growing industry can contain plenty of unprofitable or overvalued companies.
Anchoring to Purchase Price
Your cost basis is irrelevant to whether you should hold or sell a stock today. If your analysis suggests better opportunities elsewhere, holding just to "get back to even" wastes time and capital. Evaluate each position based on current prospects, not sunk costs.
Neglecting Downside Scenarios
Investment research often focuses on upside potential while glossing over risks. Force yourself to consider what could go wrong. What if revenue growth slows? What if a key patent expires? What if a major customer leaves? Thinking through downside scenarios helps you assess whether potential returns justify the risks.
Following Hype Without Due Diligence
Social media buzz, celebrity endorsements, or friend recommendations aren't research. By the time something becomes a popular story, much of the potential gain may already be priced in. Do your own analysis based on primary sources rather than secondhand narratives.
Overconfidence in Predictions
Nobody can consistently predict short-term stock movements. Building your thesis around precise price targets or timing assumptions courts disappointment. Focus on understanding business quality and valuation rather than predicting market psychology.
Analysis Paralysis
You can always find more data to analyze. At some point, additional research produces diminishing returns. Develop a standardized research process and decision framework, then execute once you've gathered sufficient information. Perfect certainty is impossible—you're making probability assessments, not guarantees.
Building Your Analysis Framework
A consistent research framework helps you analyze stocks systematically and make comparable assessments across different opportunities. Your framework should match your investment style, time horizon, and risk tolerance.
Define Your Investment Criteria
Start by establishing clear criteria. What minimum market cap will you consider? What debt levels are acceptable? What minimum ROE? These filters narrow the universe of potential investments to those matching your strategy.
Criteria might include quantitative thresholds (P/E below 20, debt-to-equity below 1.0, ROE above 15%) and qualitative requirements (understandable business model, ethical management, durable competitive advantage). Write these down. Defined criteria prevent impulsive decisions based on emotional reactions.
Create a Research Template
Develop a standard template you complete for every stock you seriously consider. Include sections for business description, competitive analysis, financial metrics, valuation, risks, and your thesis. Using the same format for every company makes it easier to compare opportunities later.
Your template should prompt you to answer specific questions: What does the company do? How does it make money? Who are the top three competitors? What are the last three years of revenue, earnings, and free cash flow? What could cause this investment to fail? What's your expected return, and over what timeframe?
Develop Conviction Levels
Not every investment deserves equal position size. Develop a system for rating conviction—perhaps high, medium, and low confidence levels. High-conviction ideas where you deeply understand the business and see clear value might warrant larger positions. Low-conviction speculative positions should be sized much smaller.
Position sizing based on conviction and risk helps you manage portfolio volatility while allowing your best ideas to drive returns.
Establish Review Triggers
Decide in advance what would cause you to revisit your analysis: major earnings misses, management changes, new competitors, regulatory shifts, or significant price moves. Without defined triggers, you might either trade too frequently based on noise or ignore important developments.
Document Your Reasoning
Write down your investment thesis when you buy a stock. Why does this opportunity exist? What would need to happen for you to be right? At what price would you sell? This documentation helps you learn from both successes and failures. When you review past decisions, you can see whether your analytical process was sound regardless of outcome.
Platforms like Rallies.ai can help organize your research and track how your theses develop over time, though the discipline of documenting decisions comes from you.
Continuously Refine Your Process
Your framework should evolve as you gain experience. Review your past decisions quarterly. Which analyses led to successful investments? Which warning signs did you miss? What metrics proved most predictive? Treat your research process as a skill that improves with deliberate practice.
Framework Development Checklist
- ☐ Written investment criteria (quantitative and qualitative)
- ☐ Standard research template used for all stocks
- ☐ Position sizing guidelines based on conviction
- ☐ Defined triggers for re-evaluating holdings
- ☐ Documentation system for recording theses
- ☐ Quarterly review process to learn from outcomes
Frequently Asked Questions
1. How long does it take to properly analyze a stock?
A thorough initial analysis typically requires 3-5 hours for someone with experience—more if you're learning. This includes reading the latest 10-K, reviewing three years of financial statements, researching competitors, and calculating key metrics. As you gain experience, your process becomes more efficient. For stocks you already know well, quarterly updates might only take 30-60 minutes to review earnings and reassess your thesis.
2. What's the difference between bottom-up and top-down analysis?
Bottom-up analysis starts with individual companies, examining their financials and competitive position regardless of broader economic or sector trends. Top-down analysis starts with macroeconomic conditions, identifies promising sectors, then selects individual stocks within those sectors. Most investors use some combination—perhaps top-down to identify themes, then bottom-up to select specific companies.
3. How many stocks should I analyze before investing in one?
There's no magic number, but comparing 3-5 companies in the same industry helps you understand what "good" looks like for that sector. You'll learn industry-specific metrics, typical valuation ranges, and competitive dynamics. This comparative analysis improves your judgment about whether a particular company is genuinely attractive or just appears so in isolation.
4. Can I analyze stocks without an accounting background?
Yes. You don't need to be an accountant to understand basic financial statements. Focus on the key numbers: revenue trends, profit margins, cash flow, and debt levels. Many concepts are intuitive once explained—profit margin is just profit divided by revenue, showing how much of each sales dollar becomes profit. Start with simpler businesses (retailers, consumer goods) before tackling complex financials (banks, insurance, complicated conglomerates).
5. How do I find reliable data for stock analysis?
Start with official company sources: quarterly and annual reports filed with the SEC (found at sec.gov). These filings contain audited financial statements and detailed business descriptions. For organized data and screening tools, platforms like Rallies.ai aggregate this information in easier-to-use formats. Cross-reference any third-party data with official filings when making important decisions.
6. What's the difference between trailing and forward P/E ratios?
Trailing P/E uses actual earnings from the past 12 months. Forward P/E uses analyst estimates for the next 12 months. Trailing P/E is based on facts but may not reflect improving or deteriorating conditions. Forward P/E incorporates expectations but depends on estimate accuracy. Most platforms show both—consider them together rather than relying on either alone.
7. How important are analyst ratings and price targets?
Analyst research provides useful data and perspectives, but take specific ratings and price targets with skepticism. Studies show analyst price targets have limited predictive accuracy beyond 6-12 months. Use analyst reports to understand different viewpoints and learn about industry dynamics, but form your own conclusions. Consensus estimates are worth monitoring as significant beats or misses move prices.
8. Should I wait for the "perfect" entry price?
Trying to time the exact bottom often means missing good opportunities. If your analysis suggests a stock is meaningfully undervalued and the business quality is high, buying at a reasonable price beats waiting for the perfect price that may never come. Some investors build positions gradually, buying partial positions and adding more if the price drops further, rather than trying to time a single entry.
9. How do I analyze companies that aren't yet profitable?
For pre-profit companies, focus on revenue growth, path to profitability, and cash runway. Examine gross margins—if they're negative, the business loses more with each additional sale, which is unsustainable. Positive and improving gross margins suggest the company could be profitable at scale. Calculate how long current cash lasts at the current burn rate. If the company will need to raise more capital before reaching profitability, factor in dilution risk.
10. How often should I review my stock analysis?
Review your holdings at least quarterly when companies report earnings. Between earnings, monitor for major news (management changes, large acquisitions, regulatory issues, competitive threats). Avoid obsessive daily checking, which encourages emotional reactions to normal volatility. Set specific triggers that warrant immediate review, such as a 20% price drop, earnings miss exceeding 10%, or significant insider selling.
11. What role does diversification play in stock analysis?
Diversification acknowledges that individual stock analysis, no matter how thorough, can't eliminate company-specific risk. Unexpected events—product recalls, accounting fraud, technological disruption—can devastate even apparently solid companies. Most investors hold 15-30 stocks across different sectors to reduce the impact of any single position. This doesn't mean buying random stocks—each should meet your analytical standards.
12. How do I know when my analysis is wrong?
Track specific assumptions in your thesis. If you bought a stock expecting 10% revenue growth but it delivers 2%, your thesis needs reassessment. If you invested for a competitive advantage that erodes, the original analysis no longer holds. Distinguish between price volatility (which is normal) and fundamental deterioration (which requires action). Document your thesis clearly so you can objectively evaluate whether reality matches expectations.
Conclusion
Stock analysis is a learnable skill that improves with practice and discipline. By systematically examining company financials, competitive position, management quality, and valuation, you can make informed investment decisions based on evidence rather than speculation or emotion. The fundamental analysis process connects your investments to actual business performance, helping you distinguish between companies with genuine value and those simply riding temporary momentum.
Start with the basics: understand what the company does, read its financial statements, compare key metrics to peers, and assess competitive advantages. Build a consistent framework that matches your investment style and risk tolerance. Avoid common mistakes like overrelying on single metrics or following hype without research. Most importantly, recognize that thorough analysis improves your odds but doesn't guarantee outcomes—markets are unpredictable, and even well-researched investments sometimes disappoint.
The research process itself compounds over time. Each company you analyze teaches you more about financial statements, industry dynamics, and valuation principles. This accumulated knowledge makes future analyses faster and more accurate. Whether you're a beginning investor learning stock research methods or someone refining their investment research process, consistent application of sound analytical principles provides the foundation for long-term success.
Want to dig deeper? Read our complete guide to stock analysis fundamentals or ask the AI Research Assistant your specific questions about analyzing stocks.
References
- U.S. Securities and Exchange Commission. "Beginners' Guide to Financial Statements." https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
- Financial Industry Regulatory Authority (FINRA). "Stock Fundamentals: How to Read a Balance Sheet." https://www.finra.org/investors/learn-to-invest/types-investments/stocks/how-read-balance-sheet
- CFA Institute. "Equity Valuation: Applications and Processes." CFA Program Curriculum, 2024.
- Damodaran, Aswath. "Investment Valuation: Tools and Techniques for Determining the Value of Any Asset." NYU Stern School of Business. https://pages.stern.nyu.edu/~adamodar/
- U.S. Securities and Exchange Commission. "Form 10-K." https://www.sec.gov/forms/form10-k
- Graham, Benjamin and Dodd, David. "Security Analysis." McGraw-Hill Education, 6th Edition, 2008.
- Federal Reserve Bank of St. Louis. "Corporate Finance and Investment Data." FRED Economic Data. https://fred.stlouisfed.org/
- Dimensional Fund Advisors. "Long-Term Returns by Asset Class, 1928-2022." DFA Returns Web, 2023.
Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice, financial advice, trading advice, or any other type of advice. Rallies.ai does not recommend that any security, portfolio of securities, transaction, or investment strategy is suitable for any specific person.
Risk Warning: All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. Before making any investment decision, you should consult with a qualified financial advisor and conduct your own research.
Written by: Gav Blaxberg
CEO of WOLF Financial | Co-Founder of Rallies.ai
