Comment on the following: Armed with economic and industry forecasts, the analyst looks at the company specific information in fundamental approach of valuation.

Armed with the economic and industry forecasts, the analyst looks at the company specific information. Company information is generated internally and externally. The principle source of internal information about a company is its financial statements. Quarterly and annual reports including the income statement, the balance sheet and cash flows must be screened to assure that the statements are correct, complete, consistent, and comparable. Many popular and widely circulated sources of information about the companies emanate from outside, or external sources. These sources provide supplements to company-generated information by overcoming some of its bias, such as public pronouncements by its officers. External information sources also provide certain kinds of information not found in the materials made available by companies themselves.