equity research - course content

8/6/2019 Equity Research - Course Content

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Con sci Con su l t an cy Pvt L td

_____________________________________________________________________________For further details Contact: Harshad Deshpande – 9819909575, Ashwin Payal - 9970320374

Consci Consultancy Pvt Ltd., Block No. 4 , Tulsi Bhavan, Opp. Kanaiya Nagar, Kopri, Thane (E)

Getting Grounded in the Basic Concepts

I. A brief overview of Equity Markets

II. Time value of money

III. Basic Financial Statement Analysis

IV.

Basic ratio Analysis

Step I: Understand the Industry First

I. Understand the business

II. Competition Analysis

III. SWOT Analysis of Industry

IV. Key industry trends analysis

V. Brief Introduction to Technology, Pharmaceutical, Telecom, Banking and FMCG Industries

Step 2: Economic Factor analysis

I. Geographic Analysis (Export import)

II. Impact of currency movement on the industry

III. Impact of interest rate movement on the industry

IV. Impact of government intervention on the industry

V. Other factors impacting demand and supply sides

Workshop on Excel

I. Data representation & Conditional Formatting

II. Sorting & Filtering of data

III. What if AnalysisIV. Pivot tables

V. Excel Shortcuts

VI. Formula & Functions Part I

VII. Formula & Functions Part II

VIII. Basic Financial Modeling

IX. Introduction to Macros






Step 3: Company Analysis

I. Operations Analysis:

a. What is the company business model?

b. Operational Parameter analysis

c.

Revenue analysisd. Costs analysis

II. Advanced Financial Statement Analysis

a. Capital Structure theories

b. Dividend theories and policies

c. Reading cash flow statement

d. Advanced Ratio Analysis

e. Computation of NOPAT & free cash flow

f. Brief Introduction to IFRS

Step 4: Projecting the Financials

I. Growth analysis

II. Estimating fundamental earnings growth

III. Building revenue model

IV. Building the cost model

V. Projecting the Profit and Loss account

VI. Projecting the Balance Sheet and cash flow statement

VII. Projecting Free cash flow statement

VIII. Estimating Capital expenditure, deprecations, Tax rates, etc.

Step 5: Valuation

I. Understanding and Estimating Risk and cost of financing

II. Free Cash flow analysis

a. Dividend Discount Model (DDM)

b. Free Cash Flow to Equity Model (FCFE)

c. Free Cash Flow to Firm Model (FCFF)

III. Relative Valuation Methodologies

a.

Price to Earning (P/E) multipleb. Price to Book Value (P/Bv) multiple

c. Price to Sales (P/ Sales) multiple

d. EV/ EBIDTA Multiple

e. EV Sales Multiple






IV. Alternative Valuation Methodologies

a. Economic Value added (EVA)

b. Adjusted Price Value

V. Special Cases in Valuation

a. Valuing the firm with negative earnings

b. Valuing a financial services firm

c. Valuing start-up firms

d. Valuing private firms

e. Valuing real estate firms

f. Valuing mergers & acquisitions

g. Valuing IPOs

Step 6: How to give the recommendations/ writing investment argument

I. Sentiment analysis

II. Analyst’s Dilemma

III. Price analysis

IV. Comparative valuations analysis

Step 7: Understand the functioning of Brokerage and Investment Banking Industry

I. Revenue model

II. Role of research/ valuation

III. Difference between the Buy side and sell side roles

Step 8 : Writing Equity Research report

Presentations and feedback session for Delegates

equity research - course content

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