Investing Basics: Fundamental Analysis

January 27, 2023
When deciding which stocks to buy, investors don't just guess. Learn how to use financial statements to decide if a stock is a good investment.
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Schwab traders get in-depth research tools

Financial Statements 101

Learn what's in financial statements and how investors use them to evaluate stocks.

Five Key Financial Ratios for Stock Analysis

Learn how these five key ratios—price-to-earnings, PEG, price-to-sales, price-to-book, and debt-to-equity—can help investors understand a stock's true value.

P/E Ratio Basics

Perhaps one of the most commonly used fundamental ratios is the price-to-earnings, or P/E, ratio. Discover how it can help you compare the valuation of two or more companies.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

This presentation is for educational purposes only and is not a recommendation or endorsement of any particular investment or investment strategy. Past performance does not indicate or guarantee future success. Returns will vary and all investments involve risks, including loss of principal.

Trading securities can involve high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon, or risk tolerance.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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