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Financial Research Analysis


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Financial Research Analysis

Magnum Institute offers “Certificate in Financial Research” which is a four-month full-time intensive classroom program, designed specially to impart practical knowledge in the field of financial research. The course offers a perfect blend of academics and practical approach, which is highly relevant within the ever competitive financial industry.
The program focuses on imparting expertise and knowledge in the field of Investment Banking, Equity Research, Private Equity and Credit Research, keeping in view the skill-sets that the industry expects and demands. The course is developed, keeping in mind, the evolving financial industry, requiring individuals to be “job ready” and ensuring productivity from the day they join the organization.

What Jobs does this Financial Analysis Certificate prepare for.

  • Financial Analyst or Associate in Investment Banking or Corporate Banking divisions of companies such as Morgan Stanley, Credit Suisse, ICICI etc
  • Equity Research Analyst in Brokerage houses and independent research firms such as Deutsche Bank, Edelweiss, Reliance Mutual Fund, Karvy, Motilal Oswal etc
  • Business Analyst in Management Consulting firms such as McKinsey, Bain etc
  • Financial Modeling Analyst in BPO and KPO Strategy Executive in Corporate Finance departments of large companies such as Tata, Reliance, Airtel etc
  • Project Finance Analyst in various financial institutions such as ICICI, Kotak etc


Learning Objectives

After completing this course, the participants will be able to:

  • Use basic and technical aspects of accounting
  • Apply different accounting terminologies
  • Identify and describe the financial statements
  • Use different financial ratios for analysis purpose
  • Interpret key financial ratios for decision making
  • Perform the comparative and common-size analysis of company
  • Interpret the practical implication of ratios with the help of case study
  • Value the fixed asset of the company on the basis of depreciation methodologies
  • Value the company on basis of latest available financial data
  • Provide an overview of Valuation Modeling
  • Perform Trading Comparable Analysis
  • Perform Transaction Comparable Analysis
  • Complete DCF Analysis
  • Work on M&A and Private Placement
  • Differentiate between different types of Pitch books
  • State the different profiles involved in building Pitch books
  • Build Pitch books
  • Analyze the different case studies
  • Describe Buy Side Vs. Sell Side of Investment Banking
  • Describe the different research techniques involved in Investment Banking
  • Perform IPO valuation
  • Provide an overview of Equity Research
  • Explain the purpose for conducting Fundamental Analysis and analyze the different approaches in detail
  • Perform the Industry Analysis with the help of various tools such as SWOT Analysis, Life Cycle model, and Michael Porter’s Five Forces model
  • Calculate the various Equity Value Multiples
  • Perform Valuations using Sum of Parts, DCF and Relative Valuation Techniques
  • Describe the different Asset Based Valuation Techniques used by the companies
  • Understand and conduct the Annual Report Analysis
  • Get familiar with the Footnotes
  • Suggest BUY/SELL for the company
  • Perform Technical Analysis
  • Provide an overview of Corporate Credit Analysis
  • Explain how the valuation of bonds are done
  • Provide an overview on risks involved in bond investment
  • Understand and explain the interest rate sensitivity of a bond
  • Describe the yield curves
  • Understand and perform securitization
  • Understand and interpret the Financial Statements
  • Evaluate the financial position from credit perspective

Course Sections

The program consists of the following three sections:

Section - 1 Basic Module:-

  • Part-1 Program Introduction

    • Financial markets overview
    • Insights into functions of Investment Banks, PE Firms and Equity Research Houses
    • Credit research
    • Various sources used for the analysis: SEC Filings, including Annual Reports (10-K) and Quarterly Reports (10-Q)
    • Concepts of the three financial statements: Income Statement, Balance Sheet and Cash Flow
    • Introduction to Financial Databases
      • Bloomberg
      • Capital IQ
      • Reuters
      • Fact Set
      • Thomson
      • Factiva
  • Part-2 Financial Statement Analysis

    • Credit Research
    • Ratio Analysis
    • Inventory Valuations
    • Depreciation Policies
    • Leases
    • Capitalization vs. Expensing
    • Income Taxes
  • Part-3 Macroeconomics

    • Understanding the macro-economics
    • Wealth & management
    • Gross Domestic Product
    • Macro-economic management
    • Impact on equity markets
  • Part-4 Mastering Excel

    • Excel basics (Analyst’s Excel formulae and functions, VLOOKUP, HLOOKUP,CHOOSE)
    • Graphs and Charts
    • Two-axis graphs
    • Band charts – PE, EV/EBITDA, P/Sales, Ratio charts
    • Direct – Indirect linking
    • Transpose functions
    • Pivot table
    • Data tables
    • Macros

Section - 2 Advanced Module

  • Part-1 Financial Modeling

    • Overview of financial modeling
    • Excel best practices
    • Modeling warm up
    • Key financial statements
    • Working capital schedule
    • Depreciation schedule
    • Amortization schedule
    • Long-term items (others) schedule
    • Building Income statement
    • Shareholder’s equity schedule
    • Shares outstanding schedule
    • Preparing for debt & interest
    • Troubleshooting
  • Part-2 Trading Comparable

    • Choosing appropriate peer group
    • Calculating equity value and EV
    • Normalizing earnings
    • Calculating last twelve months (LTM)
    • Adjusting the EV
    • Calculating fully diluted shares outstanding (options & convertibles)
    • Calculating equity value multiples: P/E, P/CF, P/BV, PEG, Dividend Yield
    • Calculating various multiples
  • Part-3 Transaction Comparable

    • Choosing appropriate deals
    • Discussing strategic rationale
    • Understanding the regulatory roadblocks/ challenges
    • Control premiums and synergies
    • Calculating equity value and enterprise value (EV)
    • Normalizing earnings
    • Checking and interpreting results
    • Understanding other valuation approaches
    • Asset-based valuation, Sum of parts, Replacement cost method, Qualitative factors in valuation – management
  • Part-4 Valuation

    • Valuing companies
    • Differentiating between Book Value and Market Value
    • Understanding Equity Value vs. Total Enterprise Value (TEV)
    • Understanding the valuation methodologies
    • Discounted Cash Flow Analysis (DCF)
    • Terminal Value (Exit Value, Perpetuity Growth Method)
    • Discount Rate (Cost of Debit, Cost of Equity, CAPM)
    • Sensitivity analysis (TABLE Function)
    • Equity value multiples: P/E, P/CF, P/BV, PEG, Dividend Yield

Section - 3 Specialized Modules :-

  • Part-1 Investment Banking

    • M&A and Private Placement
    • Pitch book building process
    • Sell-side and Buy-side process
    • Financing
    • IPO valuation
  • Part-2 Private Equity

    • Introduction to Private Equity
    • Fund Structure & Overview
    • Investment Process
    • Deal Structuring
    • Valuation
    • Fund Manager’s Perspective
    • Global Private Equity Market
    • Indian Private Equity Market
  • Part-3 Equity Research

    • Annual Report Analysis – analyst’s dissection of the available information
    • Method to forecast revenues and cost drivers
    • Balance Sheet, Income Statement and Cash Flow adjustments
    • Applying DCF valuation techniques
    • Suggesting BUY/SELL for the company
    • Professional revenue segment Projections
    • Modeling the Cost Drivers for different segments
    • Valuations using Sum of Parts, DCF and Relative Valuation techniques