If an analyst is given only one statement to analyze the investment which one should it be and why?



From all the statements, the analyst should opt to look at the cash flow statement as it allows the analyst to assay the free cash flows which can be used to build a DCF valuation model on the company. Furthermore, the analyst could also compute comparable based valuations technique on the company using multiples such as Price/FCFE or EV/FCFF. Cash is King!!



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