- Brought to you by www.stockflock.co  As a beginner in investing, it can be hard to understand complex financial statements. But in fact, there are only a handful of key points you should take note of. Here are 4 simple steps for you to have a good picture of a company’s health. 1. Valuation. Is the stock too expensive? Just like when you do your shopping, you want to find the cheapest store to buy from. The same principle applies for investing. You wouldn’t want to buy a company that is too expensive. Here is the chart of Amara, a hotel operator of the luxurious Amara Sanctuary Resort in Sentosa. First, we look at the Price-earnings of Amara. It runs at 8.91, the lowest among the 3 competitors. That makes Amara the cheapest company to invest in as compared to its competitors. ...