Investor’s guideline

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Investor’s Guideline

Investor’s guideline segment of the website will focus on uploading materials on fundamental analysis and technical analysis. There is a number of useful Excel files, Power Point slides and PDFs, which will help the investors in making prudent investment decision.

There are slides on finding out the intrinsic value of share based on free-cash model, residual earning model, residual operating earnings model and dividend discount model. So, by going through the slides you will be able to project the balance sheet, the income statement for designated time frame. You will be able to calculate the WACC, cost of equity, cost of operation.

By understanding the top down approach based materials you should get comfortable with global economy analysis, macro-economy analysis, industry analysis and company analysis, to be more precise with industry life-cycle theory, Porter’s five forces of competitive edge, Herfindahl index, S-C-P analysis, generic business strategies, sources of competitive advantage, VRIN model, Ansoff matrix, BCG. By understanding the bottom up approach based materials you should get comfortable with stock screening devices and the usage of multi-phased stock screening methods. Portions of the uploaded materials will center on the limitations and scope of absolute valuation tools.

There are slides on finding out the justified price based on relative valuation. So, by going through the slides you will be able to extrapolate firm’s value using P/E multiple, P/BV multiple, P/S multiple and P/CF multiple. Portions of the uploaded materials will center on the limitations and scope of relative valuation tools.

There are slides for investors to help them analyze price patterns of the different firms for different time frames. By understanding the technical analysis based materials you should get comfortable with support and resistance level, different price patterns, implication of Dow Theory and Elliot wave theory while analyzing the price graph, different technical indicators like MA, RSI, MACD, Stochastic oscillator, Bollinger band, MFI.

Investment in financial market is more holistic and macro-focused than it actually looks like. So, materials will also be uploaded to make investors understand the rule of investment and how the capital market actually works.