Fundamental Analysis
A Complete Package for Fundamental Analysis Course Contents Fundamental Analysis Market Basic - Capital Market Derivative - F&O Currency Commodity Benefits to Join This Course Trading Support during and after the course Free Trading & Demat A/C Online Live Class Free Demo Class Installment Facility Available Course Duration - One month Timing - one and half hour daily Monday to Friday Mode of class - Online Live on Zoom Course Fees - 10000/- after Discount 5000/- |
Detail Syllabus
CHAPTER 1 : FUNDAMENTAL ANALYSIS: AN INTRODUCTION .................................4
1.1 What is fundamental analysis? ......................................................................... 4
1.2 Why is fundamental analysis relevant for investing? ............................................ 6
1.2.1 Efficient Market Hypothesis (EMH) ....................................................... 6
1.2.2 Arguments against EMH ..................................................................... 7
1.2.3 So, does fundamental analysis work? ................................................... 9
1.3 Steps in Fundamental Analysis ......................................................................... 9
CHAPTER 2 : BRUSHING UP THE BASICS ..............................................................10
2.1 Concept of “Time value of Money” ................................................................... 10
2.2 Interest Rates and Discount Factors ................................................................ 11
2.2.1 Opportunity Cost ............................................................................. 11
2.2.2 Risk-free Rate ................................................................................. 12
2.2.3 Equity Risk Premium ........................................................................ 12
2.2.4 The Beta ....................................................................................... 13
2.2.5 Risk Adjusted Return (Sharpe Ratio) .................................................. 14
CHAPTER 3 : UNDERSTANDING FINANCIAL STATEMENTS ……………………....…….. 16
3.1 Where can one find financial statements? ........................................................ 16
3.1.1 The Director’s Report ....................................................................... 19
3.1.2 The Auditor’s Report ........................................................................ 19
3.1.3 Financial Statements........................................................................ 20
3.1.3.1 Balance Sheet .................................................................... 20
3.1.3.2 Income Statement ............................................................. 26
3.1.4 Schedules and Notes to the Accounts ................................................. 28
3.2 Cash Flow Statement .................................................................................... 30
3.3 Financial Statement Analysis and Forensic Accounting ....................................... 32
3.4 Comparative and Common-size Financial Statements ........................................ 32
3.5 Financial Ratios ....................................................................................... 32
3.6 Du-Pont Analysis ....................................................................................... 48
3.7 Cash Conversion Cycle .................................................................................. 52
3.8 The Satyam Case and Need for Forensic Accounting .......................................... 55
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CHAPTER 4 : VALUATION METHODOLOGIES .........................................................57
4.1 Top-Down Valuation (EIC Analysis) .................................................................. 57
4.1.1 Economy ....................................................................................... 57
4.1.2 Industry ....................................................................................... 60
4.1.3 Company ....................................................................................... 60
4.2 Discounted Cash Flow (DCF) Models ................................................................ 64
4.3 Dividend Discount Model (DDM) ...................................................................... 65
4.4 FCFF and FCFE based DCF ............................................................................. 70
4.5 Sum Of The parts (SOTP) .............................................................................. 75
4.6 Price / Earnings Ratio ................................................................................... 77
4.7 Price / Book Value Ratio ................................................................................ 78
4.8 Enterprise Value / EBITDA Ratio ..................................................................... 79
4.9 Price / Sales Ratio ....................................................................................... 79
4.10 Special cases of Valuation .............................................................................. 79
4.10.1 IPOs ....................................................................................... 79
4.10.2 Financial Services firms .................................................................... 80
4.10.3 Net interest margin (NIM): ............................................................... 83
4.10.4 Firms with negative cash flows .......................................................... 85
4.10.5 Acquisition Valuation ........................................................................ 85
4.10.6 Distressed Companies ...................................................................... 85