1.

Investment Summary, recommendation & target

2. Stock performance over last year and comparison with index
3. Basic information about the company
4. Business model of company and future expected performance
5. Information about industry/Sector within which company operates
6. Valuation and its description
7. Snapshot of financials and financial analysis of company
8. Management analysis and governance
9. Investment disclosure and interest statement

Document required

1. Equity resources from multiple resources

2. Latest new article of the company
3. Annual report and investor presentation
4. Spend 2-3 weeks understanding dynamics of company and industry
5. Develop your theses
6. Calculate dair value of shares (DCF/RV)
7. Act fast
8. Have patience
9. Keep yourself regularly updated

Thought Proces

- Operating leverage
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1. Walk me through DCF
- Projecting fre cash flow
- F
2. What is difference between valuation and pricing
Valuation only for the asset that generate some cashflow could be value. Valuation can be
determined by characteristic of an asset
Ex:company,debt, project
Pricing can be determined by supply and demand in the market
Ex pricing: gold, btc, currencies
3. What are 2 major valuation methodologies
Intrinsic Valuation : DCF and DDM
Relative Valuation : Public company analysis
4. Using which method you will get highest valuation
Because control premium. There is no definite answer on this
5. Can the valuation be exact
NO, because there are assumption that every people assumption is different. Therefore the
price would be sentenced in range not in exact amount.
6. Are there any other ways to do valuation
- Option pricing model
- Liquidation value
- Replacement value
7. When will you use liquidation valuation technique
 When the going concern the business is disrupted which is the company will bankcruptcy.
The company has more liability than the asset.
8. When it is most preferred to use DCF valuation
When the CF is predictable. Preferably for mature company.
For bank you consider the DDM and not to use DCF
9. List down assumption you take in DCF valuation
DCF mean calculating present value in future cash flow
10. What are the major problem with DCF valuation technique
It is very sensitive to input which is assumption that we take. Then uncertainity the
calculation the terminal value
11. What are shortcomings in precedent transaction analysis
- Lack of data for previous MnA in similar industry
- Lack of data that you have to move in past period
12. What do you mean by multiples? Why do you calculate them?
Multiple : standardized measure of value. P/E, EV/Ebitda, EV/Sales

Since absolute number are not comparable we need to make comparable. So we have to
make standardized
13. How do you select comparable in public company analysis
Similar geografi, similar industry, similar size
14. What are the 2 mont commontly used multiples
Equity multiple (PE, PBV), enterprise value (EV/Sales,EV/EBIT, EV/Nopat)
15. What are the advantages and disadvantage of using enterprise value multiple and equity
multiples
Equity Multiple: understoodable by retail investor, it doesn’t involve any assumption market
value of calculation
Enterprise value : less impacted by capital structure, less impacted by accounting policy
decision of comparable, EV is more comprehensive than equity value
16. Which valuation techniques DCF or DDM will you use for valuing bank and financial
institution
DDM. In relative valuation we use PBV and PE
17. R
18. R
19. R
20. r