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Fundamental Equity Research

Description

Fundamental Analysis is a study of factors (company specific and external environment) that influence the value of stock. It is the study of financial securities from a perspective of analyzing and comparing basic financial data about the financial securities we are looking to invest in. Fundamental Research & Analysis will look into the balance sheet, profit & loss statement, cash flows, products and services of the company, its market share, the management quality, its performance versus its peers etc.

You do not have to be a financial magus to understand all the above as much of the information required is already analyzed and made available on the internet. You just have to learn to interpret the provided information correctly.

Highlight

This module has been designed for market professionals who want to become advisors or investors in long term trading and investment and are serious about becoming a professional who wants to take part in the wealth of the market.

The training program starts from the very basic level of fundamental Research taking you to the advance levels. However, at the same time, if the basics of Financial markets are clear and the candidate has some experience in trading and investment it will help the candidate in studies.

Content

  • Introduction to Fundamental Analysis
    • Overview
    • Difference b/w TA & FA?
    • Tools of FA
  • What is fundamental analysis?
  • Why is fundamental analysis relevant for investing?
    • Efficient Market Hypothesis (EMH)
    • Arguments against EMH
  • Steps in Fundamental Analysis
  • Mindset of an Investor
    • Speculator vs Trader vs Investor
    • The compounding effect
    • Does investing work ?
    • Investable grade attributes. What does that mean ?
  • Economic Cycle
  • Macro Economy Analysis
  • Micro Economy Analysis
  • Market Forces- Demand & Supply
  • How to read the Annual Report of a Company
    • What is an Annual Report?
    • What to look for in an Annual Report?
    • The Financial Statements
    • Schedule of Financial statements
    • What to expect?
    • Stock price vs Business Fundamentals
    • Understanding the Business
    • Application of the checklist
  • Industry Reports & Analysis
  • Models for equity valuati
    • The K model
    • Gordon Growth Model
    • Dividend Discount Model (DDM)
    • CAPM – Capital Asset pricing Model
    • Calculating WACC
  • Portfolio Risk & Return
    • Risk of a portfolio
    • Return of a portfolio
    • Sharpe measuer
    • Ternyor Ratio
    • Jensens Aplha
  • Concept of “Time value of Money”
    • Interest Rates and Discount Factors
    • Opportunity Cost
    • Risk-free Rate
    • Equity Risk Premium
    • Equity Risk Premium
    • Risk Adjusted Return (Sharpe Ratio)
    • The Net Present value (NPV)
    • The Net Present values of cash flows
  • Statistical Concepts
    • Mean
    • Geometric Mean
    • Return and Risk
    • Standard Deviation of Return
    • Analysis of Standard deviation
    • Live Projects on Standard Deviation
    • Co-efficient of variation Covariance
    • Correlation Coefficient
    • Relationship between Return and Risk
    • Return and Risk of a portfolio
  • COMPANY ANALYSIS (Understanding Financial Statements)
  • Understanding the P&L Statement
    • Overview of the financial statements
    • The Profit and Loss Statement
    • The Top line of the company
    • The Expense details
    • The Profit before tax
    • Net profit after Tax
    • Conclusion
  • Understanding the Balance Sheet Statement
    • The Balance Sheet equation
    • A quick note on shareholders funds
    • The liability side of Balance sheet
    • Non Current liabilities
    • Current liabilities
  • Understanding the Balance Sheet Statement
    • The Assets side of the Balance Sheet
    • Non Current assets (Fixed Assets)
    • Non Current assets (Other line items)
    • Current assets
    • Connecting the P&L and the Balance Sheet
  • The Cash flow Statement
    • Overview
    • Activities of a company
    • The Cash flow Statement
    • A brief on the financial statements
  • The Financial Ratio Analysis
    • A note on Financial Ratios
    • The Financial Ratios
    • The Profitability Ratios
    • The Leverage Ratios
    • Operating Ratios
    • The Valuation Ratio
  • Trading Psychology
  • Report Writing
  • Conclusion

Objective

The objective of this programme is to provide comprehensive approach and deep understanding of finance, accounting, and economics. This program imparts the knowledge of valuation technique as well as the ability to read financial statements. The module aims at providing deep understanding about the concepts behind security analysis so that participants can analyze stocks, manage their personal portfolio and much more. The participants will able to project future growth of any company by analyzing its earnings and future margins.

Benefits

  • Understand the research of stock, commodity or currency.
  • Highly productive for long term investors.
  • Generate wealth from stock, commodity market, Currency (FOREX) market
  • Helps you to comprehend the market makers and movers
  • Understand the concept of economy MACRO & MICRO Analysis
  • Understand & interpret the data of Company Book of accounts.
  • Learn to predict the long term prospective of the sector and Company
  • Preparation of NISM Research Analysis Module Examination