Stock Selection & Fundamental Analysis
Read the business, reconcile the accounts and build a valuation you can explain. Turn company research into a clear investment question.
What you will learn
- Connect revenue, margins, working capital and capital expenditure to cash generation.
- Compare a cash-flow valuation with relevant multiples and explicit scenario assumptions.
- Produce a company research note covering the thesis, valuation, risks and evidence that would change the view.
Profit, cash and the investment case
Read the connection between earnings and cash before building a valuation.
Read the free lessonA free reading lesson with worked examples.Course outline
Explore the concepts and practical work, one module at a time.
01 Understand the business
Identify customers, revenue drivers, competitive pressures and capital needs. Separate a compelling product from an attractive investment at a given price.
02 Read the three statements
Connect the income statement, balance sheet and cash-flow statement. Trace working capital, debt, depreciation and dilution through the accounts.
03 Examine the quality of earnings
Reconcile profit with cash generation. Inspect recurring adjustments, receivables, inventory and the difference between maintenance and expansion investment.
04 Value the assumptions
Build a simple discounted cash-flow case and a comparable-multiple range. Keep enterprise value, equity value, net debt and share count consistent.
05 Write the research note
Set out the business case, scenario range, valuation and principal risks. Record the source and date of each material input and the evidence that would overturn the thesis.
A company research and valuation dossier
Bring the methods together in a worked case, with sources, assumptions and checks visible.
Before you begin
- Comfort with percentages and basic spreadsheet calculations.
- An interest in how companies earn money; prior accounting study is not required.
- Access to a spreadsheet and the public annual report used in the exercise.
Tools & methods
A few useful answers.
Where will I take this course?
The course and your student access are on Learnyst. Enrolment details will be available when the course launches.
Can I start learning now?
Yes. Read the free lesson on this page to explore a related idea.
Read the free lessonHow do I know if this is right for me?
Read the starting level, prerequisites and outline. If you need help choosing, tell us what you want to learn.
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