Securities Analysis - Evening

Participants learn how to apply fundamental analysis to stocks and fixed income securities.

09-Sep-2008 -- 18-Nov-2008New YorkUSD$2275
NY Institute of Finance - Midtown5:30pm - 8:00pm Instructional Method:
Group-Live
Instructor(s): [ Robert Rossetti; ] Tue Level: Basic
CPE Credits: 25.0

Research assistants, sales staff, financial planners, investment analysts, new portfolio managers and others involved in investment decisions.
No advance preparation required.
Students will be able to:
  • Comprehend the investment environment
  • Understand financial reports
  • Apply of financial statement ratios
  • Find reality in reported earnings
  • Forecast financial statements
  • Understand determinants of return on equity
  • Understand credit analysis
  • Understand valuation of securities
  • Perform technical analysis
Financial calculator required.
"The instructor was very knowledgeable and easy to understand."
"The instructor mapped out seemingly difficult material very well."
  • Portfolio Management Suite
  • Wealth Management Program
    • Scheduling Note
    The course session beginning on Janaury 21, 2008 will meet twice per week, on Tuesday and Thursday evenings. There will be no class session on Tuesday, September 30, 2008.
    SESSION 1: Introduction

    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

    SESSION 2: 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 the 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

    SESSION 3: 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

    SESSION 4: 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

    SESSION 5: 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

    SESSION 6: Competitive analysis

    Rivalry among existing competitors

    • Threat of new students
    • 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

    SESSION 7:

    Earnings and earnings per share (EPS)

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

    SESSION 8:

    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

    SESSION 9:

    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

    SESSION 10:

    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

    Clients who register for this course will receive a complimentary 6 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 subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.