Why should one take this course?
- To have a basic understanding about fundamental analysis .
- To learn the various valuation methodologies
Who will benefit from this course?
- Students of Management and Commerce
- Finance Professionals
- Stock Analysts
- Employees with Treasury & Investment division of banks and financial institutions
- Anybody having interest in this subject
Fundamental Analysis Syllabus
Fundamental Analysis: An introduction
1. What is fundamental analysis?
2. Why is fundamental analysis relevant for investing? – Efficient Market
Hypothesis (EMH), Arguments against EMH, Does fundamental analysis
3. Steps in Fundamental Analysis
Brushing up the Basics
1. Concept of “Time value of Money”
2. Interest Rates and Discount Factors – Opportunity cost, Risk-Free Rate, Equity
Premium, the Beta, Risk Adjusted Rerun (Sharpe Ratio)
Understanding Financial Statements
1. Where can one find financial statements – The Director’s Report, The
Auditor’s Report, and Financial Statements: Balance Sheet, Income
Statements, Schedules and Notes to the Accounts, Cash Flow Statement?
2. Financial Statement Analysis and Forensic
3. Comparative and Common- size financial
4. Financial Ratios
5. Du- Pont Analysis
6. Cash Conversion cycle
7. The Satyam case and need for forensic accounting
1. Top-Down valuation (EIC Analysis) – Economy, Industry, Company
2. Discounted Cash Flow (DCF ) Models
3. Dividend Discount Model (DDM)
4. Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) based
5. Sum of the part (SOTP)
6. Price-to-Earning s (PE) ratio
7. Price-to-Book value (PB) ratio
8. EV / EBITDA 9. Price to Sales ( /S) ratio
10. Special cases of valuation – IPOs, Financial Service s firms, Net interest mar in
(NIM), Firms with negative cash flows, Acquisition valuation, Distressed