Intermediate
What is a P/E Ratio?
Learn how to evaluate whether a stock is overvalued or undervalued using the Price-to-Earnings ratio and other metrics.
Read Article →Researching and Valuing Stocks
10 guides on judging a company and its price before you buy
Before you buy a share you are really asking two questions: is this a good business, and is this a good price? These ten guides work through both, in roughly that order.
They begin with the ratios - the P/E and the metrics that fill its blind spots - plus earnings per share and return on equity, which are where several of those ratios come from in the first place. Then the source documents: how to read a 10-K, and how to read the three financial statements without an accounting background.
The last few are the practical end of the work - screening for candidates, choosing a first stock, what dividends actually are, and how growth and value companies differ. Check a ratio as you read with the P/E calculator, and test a thesis in CustomStocks before it costs you anything.
Research and Valuation Guides
Ten guides that take you from a ticker symbol to an informed judgment.
Intermediate
Stock Valuation Metrics Beyond P/E
Go beyond P/E with PEG, price-to-book, price-to-sales, EV/EBITDA, and free cash flow yield to value stocks with confidence.
Read Article →Intermediate
Fundamental vs Technical Analysis
What each approach measures, their strengths and weaknesses, and how beginners can combine them to research stocks.
Read Article →Intermediate
How to Read a 10-K Annual Report
Walk through every key section - MD&A, financial statements, risk factors, and footnotes - to evaluate stocks like a pro.
Read Article →Intermediate
How to Read Financial Statements
What the income statement, balance sheet, and cash flow statement each tell you - and the key numbers to check.
Read Article →Beginner
Stock Screening for Beginners
What a stock screener is, which filters beginners should start with, and how to turn the results into a research shortlist you can practice risk-free.
Read Article →Beginner
How to Choose Your First Stock
A step-by-step framework for picking your first stock: start with what you know, check the business and numbers, and weigh valuation before you buy.
Read Article →Beginner
What Are Dividends?
Learn how dividend payments work, yield, ex-dividend dates, DRIPs, and qualified vs ordinary tax treatment for beginners.
Read Article →Intermediate
Growth Stocks vs Value Stocks
Compare the two classic investing styles - their valuations, dividends, risks, and which suits different market cycles.
Read Article →Intermediate
How to Trade Earnings Reports
How earnings season works, EPS and guidance, earnings surprises, and why stocks move on expectations - practiced risk-free.
Read Article →Other Topics
Topic
Stock Market Basics: Start Here
What a stock is, how prices are set, market hours, sectors, splits, index funds and ETFs.
Browse topic →Topic
Paper Trading: Learn by Doing, Risk-Free
Practicing with virtual money, how it differs from real trading, and the biases to watch.
Browse topic →Topic
Orders, Charts and Execution
Order types, chart reading, indicators, spreads, holding periods, short selling and margin.
Browse topic →Topic
Building a Portfolio and Managing Risk
Diversification, position sizing, dollar-cost averaging, crashes, and tax basics.
Browse topic →Put Your Knowledge Into Practice
Download CustomStocks free and start paper trading with real market data
