Securities Analysis - Day

This program applies fundamental analysis to stocks and fixed income securities and discusses data sources, performance and earnings forecasting, company management evaluation, and comparisons within an industry sector, business cycle, and microeconomics factors. This course also introduces technical analysis and valuation techniques.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
14.0
Research assistants, sales staff, financial planners, investment analysts, portfolio managers, and others involved in making investment decisions.
No advance preparation required.
Financial calculator required. Texas Instruments BA II Plus recommended.
"Very good introduction to securities analysis."
"The instructor was very knowledgeable and the course was concise, covering both basic and advanced topics."
"Very knowledgeable instructor!"
  • Portfolio Management Suite
  • Wealth Management Program
  • Stock Investing for Professionals
  • Technical Analysis - Day
    • DAY ONE
    Analysis: definition and role in securities valuation
    • Alternate approaches to securities valuation
    • Scope and limitations of securities analysis

    Equities securities analysis

    • Technical analysis
    • Quantitative analysis
    • Top down fundamental analysis

    Comparison between the types of analysis

    • Use and users
    • Empirical evidence

    Specific applications of fundamental analysis

    • Discount rate / risk premium
    • Earnings (dividends) / growth rate

    Financial Accounting and Securities Analysis

    • Role of accounting statement information in investment decisions
    • Generally Accepted Accounting Principles (GAAP)
    • Formal definitions and practical interpretations

    Financial statements

    • Balance sheet
    • Types of financial statements
    • How financial statements relate to one another

    Related Disclosure and Issues

    • Using financial statements in securities analysis
    • Common sized statements
    • Index number (trend) statements
    • Ration analysis

    Profits and Cash Flow

    • Income statement measures of profit
    • What do they mean?
    • Measures of profitability: definitions and interpretations
    • Analysis of profitability measures

    Cash flow

    • Role of cash flow in securities analysis
    • Computation of cash flow
    • Statement of cash flows

    Analysis of Profitability and Return

    • Profitability analysis
    • Profit margin: gross, operating and net
    • Related cost and profit issues
    • Break-even analysis
    • Operating leverage

    Return on investment

    • Return on assets (ROA)
    • Return on equity (ROE)
    • Impact of financial leverage
    • Dupont method

    Economic Analysis

    • Role of economic analysis in security analysis
    • Connection between the real economy and the financial markets
    • Economic variables and securities valuation

    Macroeconomic analysis

    • Aggregate supply and demand
    • Business cycles and the financial markets
    • Economic variables and the securities valuation

    Microeconomic analysis

    • Firm and industry cost and revenue curves
    • Industry structure

    DAY TWO
    Competitive analysis
    • Rivalry among existing competitors
    • Threat of new entrants
    • Bargaining power of buyers, suppliers
    • Bargaining power of suppliers
    • Industrial/product life cycle theory
    • Pioneering development
    • Stabilization and market maturity
    • Deceleration of growth and decline

    Industrial/product life cycle theory

    • Pioneering development
    • Stabilization and market maturity
    • Deceleration of growth and decline

    Earnings and earnings per share (EPS)

    • Concept of earnings
    • Measuring earnings
    • Earnings quality
    • Earnings projections

    Asset pricing and risk

    • Classical measures of risk
    • Modern Portfolio Theory - standard deviation of return
    • Capital Asset Pricing Model - Synthetic risk (beta)

    Modern portfolio theory

    • Risk
    • Efficient portfolios/frontier

    Capital Asset Pricing Model (CAPM)

    • Model specifications
    • CAPM and the index model
    • Arbitrage pricing model

    General considerations

    • Earnings/net revenues/cash flow
    • Risk - discount rate including an equity risk premium

    Asset based versus earnings flow based approaches

    • Liquidation value
    • Return on equity (ROE)
    • Earnings/cash flow based methodologies

    Company analysis

    • Position within industry
    • Financial statement analysis
    • Interpreting financial statements and ratios

    Price/earnings ratios

    • Variants - historic/trailing versus forecast/forward p/e ratios
    • Factors influencing market/stock valuation multiples

    Other common stock valuation ratios

    • Cash flow multiples
    • Sales multiples
    • Book value multiples

    Dividend discount models

    • Stock reflects present value of dividends
    • Variants
    • Considerations

    Fixed Income and Derivative Considerations

    • Duration/Convexity, Bond Pricing
    • Derivative Considerations

    Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.) Lunch included for all students taking day classes.

    Lunch included for all students taking day classes.