NATIO

ONAL STOCK
S
EXCHA
ANGE OF INDIA
A LIMITE
ED
Depart
rtment : SB
BU-Educatio
on
NCFM
M COURS
SE OUTLINE

Fundam
mental Analy
ysis Module
e
Fundamenttal Analysis: An introdu
uction
1. Wha
at is fundame
ental analysi s?
2. Whyy is fundame
ental analysiss relevant forr investing? - Efficient Maarket Hypothesis (EMH),
Argu
uments again
nst EMH, Do
oes fundame
ental analysis
s work?
3. Step
ps in Fundam
mental Analyysis

Brushing up the Basics

s
1. Con
ncept of Time value of M
Money
2. Interest Rates and Discount Factors Opportunity co
ost, Risk-Freee Rate, Equity Risk
Prem
mium, The Beta,
B
Risk Ad
djusted Returrn (Sharpe Ratio)
R

Understand
ding Financiial Statemen
nts
1. Whe
ere can one find
f
financiall statements The Directors Report,, The Auditorrs Report,
Fina
ancial Statem
ments: Balancce Sheet, Inc
come Statem
ments, Scheddules and No
otes to the
Acco
ounts, Cash Flow Statem
ment
2. Fina
ancial Statem
ment Analysiss and Forens
sic Accountin
ng
3. Com
mparative and
d Common-ssize financial statements
4. Fina
ancial Ratios
5. Du-P
Pont Analysis
6. Cassh Conversion cycle
7. The Satyam cas
se and need for forensic accounting
a

Valuation Methodologi
M
es
1. Top-Down valua
ation (EIC An
nalysis) Eco
onomy, Industry, Compaany
2. Disccounted Cash Flow (DCF
F) Models
DM)
3. Divid
dend Discou
unt Model (DD
4. Free
e Cash Flow to Firm (FCF
e Cash Flow to Equity (F CFE) based DCF
FF) and Free
5. Sum
m of the parts
s (SOTP)
6. Price-to-Earning
gs (PE) ratio
7. Price-to-Book va
alue (PB) rat io
8. EV / EBITDA
9. Price to Sales (P
P/S) ratio
10. Spe
ecial cases off valuation IPOs, Finan
ncial Services
s firms, Net i nterest marg
gin (NIM), Firrms
with negative ca
ash flows, Accquisition valu
uation, Distre
essed compaanies

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ngePlaza,Ba
andraKurlaCComplex,Bandra(E),Mu
umbai400 051Page 1 of 1