Course Objectives:
- Understand the principles of fundamental analysis.
- Learn to evaluate financial statements.
- Develop skills to analyze economic indicators and industry trends.
- Gain proficiency in assessing a company’s intrinsic value.
- Understand the impact of macroeconomic factors on stock prices.
- Learn to make informed investment decisions based on fundamental analysis.
Course Schedule:
Month 1: Introduction to Fundamental Analysis and Financial Statements
Class 1: Introduction to Fundamental Analysis
- Definition and importance of fundamental analysis
- Difference between fundamental and technical analysis
- Overview of the course
Class 2: Understanding Financial Statements I
- Introduction to financial statements
- The balance sheet: assets, liabilities, and equity
- How to read and interpret a balance sheet
Class 3: Understanding Financial Statements II
- The income statement: revenues, expenses, and profits
- How to read and interpret an income statement
- Key financial ratios derived from the income statement
Class 4: Understanding Financial Statements III
- The cash flow statement: operating, investing, and financing activities
- How to read and interpret a cash flow statement
- Importance of cash flow in assessing a company’s health
Month 2: Financial Ratios and Industry Analysis
Class 5: Financial Ratios I
- Liquidity ratios: current ratio, quick ratio, etc.
- Profitability ratios: gross margin, operating margin, net margin, etc.
- How to calculate and interpret these ratios
Class 6: Financial Ratios II
- Leverage ratios: debt-to-equity, interest coverage, etc.
- Efficiency ratios: asset turnover, inventory turnover, etc.
- Market value ratios: P/E ratio, P/B ratio, etc.
- How to calculate and interpret these ratios
Class 7: Industry Analysis I
- Understanding industry dynamics
- Porter’s Five Forces analysis
- Analyzing industry trends and competitive landscape
Class 8: Industry Analysis II
- SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
- Evaluating industry growth prospects
- Identifying key industry drivers and challenges
Month 3: Valuation Methods, Macroeconomic Factors, and Investment Decisions
Class 9: Valuation Methods I
- Intrinsic value vs. market value
- Discounted Cash Flow (DCF) analysis: concepts and calculations
- Using DCF to estimate a company’s intrinsic value
Class 10: Valuation Methods II
- Relative valuation methods: comparables analysis
- Valuation multiples: EV/EBITDA, P/E, P/B, etc.
- How to use multiples for valuation
Class 11: Macroeconomic Factors and Their Impact on Stock Prices
- Key economic indicators: GDP, inflation, interest rates, etc.
- Impact of monetary and fiscal policy on markets
- Understanding the global economic environment
Class 12: Making Investment Decisions Based on Fundamental Analysis
- Integrating financial and industry analysis
- Case studies: Analyzing real companies
- Developing and presenting investment theses