Fundamental Stock Analysis and Valuation

Course details

During this course, participants will learn how to analyze corporate financial statements and forecast future corporate earnings, in order to determine the fair market value of company shares.

Course Description:

During this course, participants will learn how to analyze corporate financial statements and forecast future corporate earnings, in order to determine the fair market value of company shares.

Course Objectives:

• Use fundamental analysis to make investment decisions.
• Analyze financial statements as part of the investment decision-making process.
• Calculate different share values.
• Describe the different fair value calculation methods.

Course Outline:

Module 1: The Importance of Fundamental Analysis in Investment Decision-making

• The difference between fundamental and technical analysis
• Basic procedures for fundamental analysis

Module 2: Financial Statements: the Income Statement, Balance Sheet and Cash Flow Statement

• How to read and analyze corporate financial statements
• Extrapolation of financial indicators from the financial statements
• The concept of present value and how to choose the suitable discount rate

Module 3: The Different Share Values

• The nominal value
• The book value
• The market value
• The fair value
• Different methods for calculating the fair value
• The book value multiplier method
• The profit multiplier method

Module 4: The Different Methods of Calculating the Fair Value

• The discounted cash flow method
• The discounted distributions method
• Using the relative weight for weighting the fair value
• Comparing the fair value with the market value to make investment decisions
• Case Studies

Assessment Strategy:

• Participants will be informally assessed on their interaction during sessions and their participation in exercises