While information from all of the financial statements, as well as non-financial information from other sources, can be useful in making investment decisions, it isn't necessary. Start out understanding the basics of being a long-term buy and hold investor using fundamental analysis laid out on the NAIC tools to select stocks to invest in. Think of the Income Statement as a video showing the movement of money in and out of the company over a quarter or a year. While the Income Statement looks at a company over time, the Balance Sheet looks at what a company owns and owes on a particular day in time. EPS come from sales.
Growth companies have sales increasing faster than the economy as a whole is growing.
Well-managed growth companies consistently increase their sales faster than the economy as a whole, that is to say year after year. The management of a well-managed growth company does a good job of investing the equity that shareholders entrust to them. I want to pay a fair price for a growth company's EPS and good management. Only if the company passes the SSG criteria for being a good company do I move to the second question-Is this stock a good value. To answer this question, I estimate the highest price and the lowest price that I reasonably expect the stock may sell for over the next five years.