Course Code: 511

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Douglas Carroll

CPE Credits: 7

Prerequisite: Seminar 530 or equivalent experience is recommended but not required.

This seminar provides a comprehensive overview of equity securities analysis. Various methods of analysis will be surveyed, but the program will primarily concentrate on fundamental securities analysis. The presentation will explore all the major elements of the securities analysis process (e.g. economic analysis, market analysis, industry analysis, etc.). Classroom discussion will focus on the tools and techniques employed by analysts and emphasize their application and interpretation. This will include an investigation of all major valuation methodologies: earnings multiples (p/e ratios); other valuation multiples - cash flow, sales, book value; discounted present value of earnings, dividends or free cash flow.

This seminar would be beneficial to anyone whose job necessitates a basic understanding of the equity securities analysis process and its major elements such as early career professionals in sales or trading. The program would be especially helpful for early to mid career professionals in areas supporting equity trading, sales or portfolio management such as portfolio administrators or assistants, or personnel from clearance and settlement, compliance, financial control or information technology.

Securities Analysis: Overview and Introduction

•  Scope and limitations of analysis in securities valuation
•  Methods of analysis
  • fundamental
  • technical
  • quantitative

•  Top down versus bottom up fundamental analysis
  

Valuation of Financial Assets Using Fundamental Analysis

•  Determinants of value - cash flows and risk
•  Equity security valuation methodologies
•  Financial Accounting and Securities Analysis
•  Role of accounting statement information in investment decisions
•  Income statements, balance sheets and cash flow statements
•  Profits and cash flow; measurement and interpretation
•  Analysis of profitability and return on investment

Economic Analysis

•  The business cycle, financial markets and equity valuation
•  Economic policy: monetary and fiscal

Industry Analysis

•  Competitive analysis
•  Industrial life cycle theory

Earnings

•  Earnings quality
•  Earnings management or income smoothing
•  Earnings forecasts or projections

Asset Pricing Model (CAPM)

•  Risk - traditional measures versus modern finance theory
•  Modern Portfolio theory and CAPM

Equities Valuation Models

•  Valuation multiples - earnings (p/e), sales or cash flow
•  Discounted cash flows - dividends, free cash flow or earnings