Programme Overview
This programme will equip you with a solid foundation on the basic fundamental analysis of stocks and prepare you for your first foray into the stock market.
Fundamental analysis programme will help you to identify in which sector or segment you have to enter to invest by evaluating a security/share by analysis of the industry after identifying the industry you have to do company analysis and identify the company, stock, currency in which you have to invest or trade.
Provide a concise review of stock markets and taxonomy of stock market prediction methods, then focus on some of the research achievements in stock analysis and prediction and discuss technical, fundamental, short- and long-term approaches used for stock analysis.
Fundamental analysis will guide you to identify in which direction buy or sell you have to enter in the particular stock.
Understand that to do intraday trading we have to make a combo knowledge of both technical analysis and fundamental analysis.
We will look at industries and economic sectors that neatly define an economy, also introduce you to fundamental concepts, and finally, we’ll examine mutual funds and ETFs as alternatives to individual stocks for investing.
People who should attend:
- Students of Management and Commerce
- Stock Analysts
- Employees with Trading & Investment division of banks and financial institutions
- Anybody have an interest in this subject
- Beginner stock market investors
- Medium to Long term investors
- Stock Broker, Investment Consultants, Portfolio Managers, Researchers, Investment Consultant etc.
- Those who want to pursue a career in the financial market
- Those who want to do analysis in the stocks market
What you'll learn:
- A method of determining a stock's real or ''fair market'' value.
- Stocks that are currently trading at prices that are higher or lower than their real value.
- The fair market value is higher than the market price, the stock is deemed to be undervalued and a buy recommendation is given.
- In contrast, technical analysts ignore the fundamentals in favour of studying the historical price trends of the stock.
- Acquire skills, knowledge and understanding related to stocks, exchange-traded funds (ETFs), and mutual funds
- How to perform basic fundamental analyses
- to make a projection on its business performance.
- Fundamental analysis involves looking at any data which is expected to impact the price or perceived value of a stock.
- Performing fundamental analysis can be challenging because it requires digging through financial statements to know when the stock price is wrong.
Foundation in STOCK Fundamental Analysis
Fundamental Analysis of STOCK
Fundamental analysis is a systematic approach used to measure a security's intrinsic value by studying related macro-economic (overall economy and industry conditions) and company-specific factors (financial condition and management). It is done using qualitative and quantitative factors.
Fundamental analysis is a way to evaluate investments free from behavioural biases.
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Course Duration |
| 6 Hours |
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Intake |
| Every Calendar Month |
Course Outline (Knowledge Domains)
INTRODUCTORY CONCEPTS AND PRINCIPLES IN FOUNDATION IN STOCK FUNDAMENTAL ANALYSIS.
SECTION A
Understanding Fundamental Analysis
Carrying out fundamental analysis is to generate an intrinsic value that an investor can weigh against the current price of the security, with the goal of outlining the type of position to take with that security (underpriced=Buy, overpriced=Sell).
The fundamental analysis emphasizes macro-economic and the financial statements of the company performance being assessed at a fair market value for the stock.
1. Types of Fundamental Analysis
Fundamental analysis is not limited to only studying a company’s balance sheet. There are two types of fundamental analysis –
- Qualitative Fundamental Analysis
- Quantitative Fundamental Analysis
2. How Does Fundamental Analysis Work?
There are two approaches to fundamental analysis –
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Top-Down approach
- looks at macro-economic factors
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Bottom-Up approach
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start by analysis a company, then the industry and finally the overall economy.
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start by analysis a company, then the industry and finally the overall economy.
SECTION B
1. Three Pillars of Fundamental Analysis
Every company functions in an environment that shapes its future. This environment influences the stock’s intrinsic value. Hence, economic, industry and company analysis is an important part of fundamental analysis.
- Economic Analysis
- Industry Analysis
- Company Analysis
2. How to Perform Fundamental Analysis?
Fundamental analysis is not just for analysts with fancy degrees. Everyone with a basic understanding of finance can practice fundamental analysis. You will need the following tools for fundamental analysis –
- Company’s annual reports.
- Access to competitors and overall industry data.
- Access to news of your shortlisted companies and industries.
3. Difference between Technical and Fundamental Analysis
Fundamental and technical analysis provides answers to two very different questions.
- Fundamental analysis tells you ‘what’ to buy.
- Technical analysis tells you ‘when’ to buy.
Hence traders should prefer technical analysis. Investors looking to create long term wealth should focus more on fundamental analysis.
