ADT Academy

Stocks · Lesson 8 of 15

Fundamental Analysis

Fundamental Analysis: slide 1 of 6
Slide 1 / 6

Level: Intermediate · About 12 min · 6 slides

Fundamental analysis estimates what a company is really worth from its financials and the economy around it. You'll learn the three statements, the key ratios, how to judge the business qualitatively, and how a top-down approach works, before we switch to charts in Lesson 9.

🔑 Key takeaways

  • Start with the business model: how does the company make money?
  • Income statement (profit), balance sheet (what it owns/owes), cash flow (real cash).
  • Ratios are rules of thumb. Compare to the company's own industry.
  • Qualitative edge: management, moat, industry trends.
  • Top-down: economy → sector → stock.

✅ Your homework

  1. Pull a company's latest 10-K from SEC EDGAR or Yahoo Finance.
  2. Compute its P/E, debt-to-equity and ROE.
  3. Write one sentence on its moat and one on its biggest risk.
  4. Compare its P/E to two competitors.

📎 Resources

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