Equity Research & Stock Market Analysis

Module - 1 Advanced Excel

Lookup & Reference Functions & Mathematical Functions

VLookup, HLookup, Index, Match, Offset, Indirect, Address, Column, Columns, Row, Rows, Choose, Arrays Concept InLookup Formula’s ,Sum, Sumif, Sumifs, Count, Counta, Countblank, Countif, Countifs, Average, Averagea, Averageif, Averageifs,

Text Function & Date & Time Function

Char, Clean, Code, Concatenate, Find, Search, Substitute, Replace, Len, Right, Left, Mid, Lower, Upper, Proper, Text, Date,Day, Month, Year, Edate, Eomonth, Networkdays, Workday, Weeknum, Weekday, Hour, Minute, Second,Now, Today, Time

Logical Functions & Other Functions

And, Or, If, Iferror, Not, Nested If ,Isna, Isblank, Iserr, Iseven, Isodd, Islogical, Isytext, Max, Min

Data Management

Data Collection Method With Data Quality, Collaboration & Security Like Share Your Workbook On Share Drive With Quality

Analysis

Single/Multidimensional Analysis, Like Three Dimensional (3D) Tables Sensitive Analysis Like Data Table, Manual What-If Analysis, Threshold Values, Goal Seek, One-Variable Data Table,

Advanced Chart, Graph & Dashboard:

Advanced Chart Technique, How To Make Dynamic Charts, Bar Charts, Pie Charts, Scatter Chart, Line Chart, Column Chart, Speedometer Chart, Gantt Chart, Two-Variable Data Table

Advanced Filter, Validation & Pivot Table:

Filters (Basic, Advanced, Conditional), Sort (Ascending, Descending, Cell/ Font Color), Conditional Formatting, Data Validation, Group & Ungroup, Data split.

Pivot Table and Charts, Import and Export data, Protect/Unprotect sheets/workbooks. Worksheet formatting and Print Display

Module - 2 Equity Research & Valuation

Objectives

To give you the capacity to understand the theory and apply, in real world situations, the techniques that has been developed in equity research.

To give you the big picture of equity research so that you can understand how things fit together.

To show you that equity research is fun.

Approach: Prepare Equity Research Model (base)

Prepare a blank excel sheet with separate Income Statement, Balance Sheet and Cash Flows and use neat formats

Populate the historical financial statements and do the necessary adjustment for non-recurring items (one-time expenses or gains).

Perform the Fundamental Analysis (Ratio Analysis) for historical years (vertical analysis, horizontal analysis and trend analysis and calculate ROEs using DuPont).

Module – 2.1 Prepare Equity Research Financial Model

Forecast the financial model using case study.

Balance the balance Sheet

Module – 2.2 Valuations

Discounted Cash Flows

Calculate FCFF

Calculate WACC post the calculation of the capital structure

Find the Enterprise Value of the Firm

Find Equity Value of the Firm after the deduction of Net Debt

Divide Equity Value of the Firm by the total number of shares to arrive at “Intrinsic Fair Value” of the company.

Do sensitivity analysis of WACC with Share Price

Relative Valuations

Identify the comparable based on the business, Market Capitalization and other filters

Identify the suitable valuation multiple to be used for this business.

Use the average valuation multiple to find the valuation

Suggest “Undervalued” or “Over-valued”.

Module – 2.3 Calculate Target Price

Based on DCF

Based on Relative Valuations

Recommend whether to “BUY” or “SELL”

Module - 3 Basic Technical Analysis Course (with LIVE trading sessions)

Philosophy of Technical Analysis.

Overview on Financial Markets.

The principles of the Dow Theory – Interpreting Trends and combining them with Support and Resistance levels.

Basics of Technical Analysis

Bar chart,

Candle Chart,

Line Chart etc.

Trend & Trend Line.

Volume, OBV and Open Interest.

Understanding moving averages

Simple Moving Averages,

Exponential Moving Averages

An in-depth study of Moving Averages and the role it plays in determining a trade. The multiple uses of Moving Averages for different time horizons of trades.

How to identify market trends.

Candle Patterns :

Doji,

Hammer,

Hanging Man etc.

Chart Patterns – Understanding the psychology behind a pattern and its formation. Interpretation of Chart patterns and the significance of volume while using patterns. Evolving a Trading strategy based on patterns.

Head and Shoulders,

Cup and Handle,

Flags and Pennants etc.

Descending triangles,

Head & Shoulder Top,

Symmetrical Triangles,

Wedges etc.

How to identify entry and exit signals using oscillators and volatility indicators

MACD

RSI

Stochastic etc.

Advance/Decline Line.

Understanding on Options

Put/Call Ratio

VIX (Volatility Index)

Bollinger Bands

Donchian Channels

Parabolic SAR

Setting Price Targets using Fibonacci.

Fibonacci extension

Swing Trading.

Trading with Futures & Options – with a basic study on the Risk, Reward and Timing relating to Derivative based trading approach.

Day Trading – Exposure to real life situations using technical analysis with mechanical systems. Running scans / stock picking on a Real-time basis. Post completion of course having LIVE Market training, to feel the reel zest of stock market.