ISM Institute of Stock Market Delhi

Fundamental Analysis Course

Investing in stocks and analyzing them are easier. What’s more, they provide handsome returns, too, if picked well.

More about Investing

The fundamental analysis determines the health and performance of an underlying company by looking at key numbers and economic indicators. The purpose is to identify fundamentally strong companies or industries and fundamentally weak companies or industries. Investors go long (purchasing with the expectation that the stock will rise in value) on the companies that are strong, and short (selling shares that you believe will drop in value with the expectation of repurchasing when at a lower price) the companies that are weak. This method of security analysis is considered to be the opposite of technical Analysis which forecasts the direction of prices through the analysis of historical market data, such as price and volume.

Covering 31+ Topics + 50+ Case Studies       Check syllabus

The Basics of Fundamental Analysis

Fundamental analysis of stocks is of paramount importance for investors as it provides a solid foundation for making informed investment decisions. By analyzing the financial health, growth prospects, and valuation of a company, fundamental analysis helps investors assess the intrinsic value of a stock and identify potential investment opportunities.

  • Fundamental analysis involves evaluating various factors, such as financial statements, earnings, cash flows, dividends, management quality, industry trends, and macroeconomic indicators, to gain insights into the overall health and performance of a company. 
  • This information of fundamental analysis of stocks india enables investors to make informed decisions about buying, holding, or selling stocks, based on their long-term investment goals and risk tolerance. 
  • Moreover, fundamental analysis helps investors understand the underlying fundamentals of a company, which can impact its stock price in the long run. 
  • It also helps investors identify risks and uncertainties that may affect the financial performance of a company and make informed decisions accordingly.

Our Fundamental Analysis Course

Our Fundamental Analysis Course is a comprehensive program designed to provide investors and traders with the knowledge and skills necessary to analyze the financial health and performance of companies.

Through in-depth lessons, practical examples, and case studies, participants will learn how to evaluate financial statements, assess earnings quality, analyze industry trends, and evaluate management quality.

The course covers various fundamental analysis techniques and concepts, including valuation methods, financial ratios, and key performance indicators. Our experienced instructors provide practical insights and real-world applications of fundamental analysis in the stock market, equipping participants with the tools to make informed investment decisions.

Whether you are a beginner or an experienced investor, our Fundamental Analysis Course is designed to enhance your understanding of how to effectively analyze and evaluate stocks based on their underlying fundamentals, helping you make informed investment decisions and manage risks with confidence.

Here's what you will learn

    1. An  Introduction
1.1What is the fundamental analysis?
1.2 Why is fundamental analysis relevant for investing?
1.3 Efficient Market Hypothesis (EMH)
1.4 Arguments against EMH
1.5 So, does fundamental analysis work?
1.6 Steps in Fundamental Analysis

   2.Brushing Up the Basics
2.1 Concept of “Time value of Money
2.2 Interest Rates and Discount Factors
2.3 Opportunity Cost
2.4 Risk-free Rate
2.5 Equity Risk Premium
2.6 The Beta
2.7 Risk-Adjusted Return (Sharpe Ratio).

   3.Understanding Financial Markets
3.1 Where can one find financial statements?
3.2 The Director’s Report
3.3 The Auditor’s Report
3.4 Financial Statements
3.5 Balance Sheet
3.6 Income Statement
3.7 Schedules and Notes to the Accounts

3.8 Cash Flow Statement
3.9 Financial Statement Analysis and Forensic Accounting
3.10 Comparative and Common-size Financial Statements
3.11 Financial Ratios
3.12 Du-Pont Analysis
3.13 Cash Conversion Cycle
3.14 The Satyam Case and Need for Forensic Accounting

4.1 Top-Down Valuation (EIC Analysis)
4.2 Economy
4.3 Industry
4.4 Company

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Course Duration: 1 Month

Fee: ₹ 17,700


Together wih

Value Investing Course

Financial education is genuinely pivotal to the speculators as well as to everyone who needs to draw nearer to their financial opportunity. Also, that you may feel of resigning early or you need to remain financially free, you will require financial education. This Essential Stock Investing Course will be an alternate way for you to chop down your education time and help you fabricate a superior financial life.


Important Principles of Investing?

The three phrases that you must engrave in your mind are: good businesses, right valuations, and long-term focus. Ignore short-term volatility and base your investment decisions on these principles.

Stocks vs other investments

Stocks compete with many other asset classes, starting from a rudimentary bank account to other advanced asset classes like currency futures. While diversification across asset classes is a good idea, no other asset class is more rewarding than equity. Bank deposits and debt instruments (bonds and bond funds, Public Provident Fund, post-office deposits, etc.) give fixed returns and hence look safer than
stocks, which can be highly volatile. Debt instruments were the previous generation’s pet. Many of us still vouch by the sanctity of fixed income. The only problem is that you can’t create wealth with debt.

Stock-investing styles

How to make money in the stock market? This is a classic question that most investors ask. And the answer to this question depends upon whom you are asking. There are a number of styles of stock investing and their adherents vouch for the efficacy of their respective styles. How do you know then which style is good? Here is some quick help.
Broadly, all styles of stock investing can be categorized into two: fundamental investing and technical investing. While a fundamental investor studies financial details and other company-related information to pick his stocks, technical investor studies price patterns, trends, mathematical models and other graphical data to pick stocks

What is value investing?

Value investing is a real form of investing. It requires you to find good companies available at a bargain.

Value investing is essentially long-term investing as the realization of value happens over the long term. This is why you should have a time horizon of at least five years when you invest in stocks.

What is Balance sheet?

The balance sheet is called so because it always balances according to this relation:
Assets = Liabilities + Owners’ equity

A balance sheet that doesn’t balance is simply wrong. The balance sheet shows the assets that a business owns, the liabilities that it owes and the funds contributed by its shareholders. Assets include land, equipment,
inventory, goodwill, patents, brand value, etc. Liabilities include debt (long term and short term) and any other payables that a business has. Shareholder funds are in the form of equity and reserves.

What is Profit-and-loss statement ?

As its name suggests, the P&L statement tells you about
the profitability of a company. The simple formula to
calculate profits is as follows:
Profit (loss) = Revenue – Expenses

The head ‘revenue’ generally has two entries: revenue from sales and other income. Other income is the revenue from the sources other than the core area of the company’s operations. For instance, it could be income from investments, dividends, royalties, etc.

Cash-flow statement?

The cash-flow statement shows the movement of cash in a business. While businesses can misstate their profits through accounting jugglery, they can’t fudge the movement of hard cash. Hence, a cash-flow statement provides a true picture of a company’s financial health. However, for banks and finance companies, the cash-flow statement is of limited use as these businesses have a different business model
than other types of businesses.

What are Financial ratios?

If you are not one who likes to dig deep into a company’s financial statements but still wants to make sense of its financials, financial ratios come to your rescue. They are readymade tools to interpret
what’s happening in a company. Most financial ratios can be derived from the three major financial statements: balance sheet, profit-and-loss statement, and cash-flow statement.

Debt to equity:

Companies take debt to run their business operations. Their shareholders also put money, called equity, in the business. The debt-toequity ratio tells us about this balance. A high debto-equity is not desirable. But to know what is ideal, you must see the industry-wide trend.

What is Return on net worth (RONW)?

Also called the return on equity (ROE), this ratio tells us what returns a
company is generating on its equity part. A high RONW is desirable. Good companies have more RONW than their peers.

what is Operating margin?

This ratio tells us how much a company makes from its core operations. It is derived by dividing the operating profit by the total revenues.
A high operating margin is a good sign, but do see the industry trend.

what is Revenue growth?

This ratio indicates how fast a company is growing its revenues over a period of time. High revenue growth is a positive sign and shows that the company is expanding.