Admission: OPEN
FUNDAMENTAL ANALYSIS
CHAPTER 1
INTRODUCTION TO FUNDAMENTAL ANALYSIS
WHAT IS FUNDAMENTAL ANALYSIS?
WHY IS FUNDAMENTAL ANALYSIS RELEVANT FOR INVESTING?
EFFICIENT MARKET HYPOTHESIS(EMH)
ARGUMENTS AGAINST EMH
STEPS IN FUNDAMENTAL ANALYSIS
CHAPTER 2
BRUSHING UP THE BASICS
CONCEPT OF “TIME VALUE OF MONEY”
INTEREST RATES AND DISCOUNTS FACTORS
OPPORTUNITY COST, RISK FREE RATE, EQUITY RISK PREMIUM
THE BETA, RISK ADJUSTED RETURN (SHARPE RATIO)
CHAPTER 3
UNDERSTANDING FINANCIAL STATEMENTS
WHERE CAN ONE FIND FINANCIAL STATEMENTS
THE DIRECTORS REPORTS
THE AUDITORS REPORTS
FINANCIAL STATEMENTS, BALANCE SHEET, INCOME STATEMENTS, SCHEDULE NOTES & ACCOUNTS
CASH FLOW STATEMENTS
FINANCIAL STATEMENT ANALYSIS AND FORENSIC ACCOUNTING
COMPARATIVE AND COMMON SIZE FINANCIAL STATEMENTS
FINANCIAL RATIOS (PE, EPS, BV, PEG, EV, ROE, ROCE ETC...)
DU-PONT ANALYSIS
CASH CONVERSION CYCLE
THE SATYAM SCAM AND NEED OF FORENSIC ACCOUNTING
CHAPTER 4
VALUATION METHODOLIES
TOP- DOWN VALUATION (EIC ANALYSIS)
DISCOUNTED CASH FLOW MODELS
DIVIDEND DISCOUNT MODEL
FCFF & FDFE BASED DCF
SUM OF THE PARTS (SOTP)
PRICE/ EARNINGS RATIO
PRICE/ BOOK VALUE RATIO
ENTERPRISE VALUE/ EBITDA RATIO
PRICE/ SALES RATIO
SPECIAL CASES OF VALUATION
IPOS, FINANCIAL SERVICES, NET INTEREST MARGIN (NIM)
FIRMS WITH NEGATIVE CASH FLOWS, ACQUISITION VALUATIONS, DISTRESSED COMPANIES
WORKING ALL TOGETHER, CHECKLIST.