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Certified Equity Research Analyst VS-1010

Certified Equity Research Analyst

Certified Equity Research Analyst Certification Code VS-1010 Vskills Certification in Equity Research focuses on developing the necessary skills for the purpose of advising investors and financial institutions to make profitable investment decisions in the capital market by providing a brief overview of the global markets and an understanding of the stock market movements. The certification assesses the candidate’s qualitative and quantitative skills for stock evaluation, analyzing and interpretation of annual reports and the basic techniques of valuation.

Why should one take this certification? This Course is intended for professionals and graduates wanting to excel in the field of equity research and valuation. It is also well suited for those who are already working and would like to take certification for further career progression. Vskills Certification in Equity Research is for those candidates looking for opportunities in equity research and valuation division. The certification can help candidate differentiate in today's competitive job market, broaden their employment opportunities by displaying their advanced skills, and result in higher earning potential.

Who will benefit from taking this certification? Job seekers looking to find employment in investment houses, brokerage firms, KPOs, insurance firms etc, students generally wanting to improve their skill set and make their CV stronger and existing employees looking for a better role can prove their employers the value of their skills through this certification.

Test Details: • • •

Duration: 60 minutes No. of questions: 50 Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in this module.

Fee Structure: Rs. 3,000/- (Includes all taxes)

Certified Equity Research Analyst Companies that that hire Vskills Certified Equity Research Analyst Vskills Certified Equity Research Analyst might find employment in big or small investment houses, mutual funds, insurance houses, brokerage firms or KPO, Venture Capital and Credit Rating firms.

Certified Equity Research Analyst

Table of Content 1. Introduction 1.1 Goals of Equity Research 1.2 Elements of Equity Research 1.3 Process of Equity Research 1.4 Types of Research 1.5 Classification of Stocks and Market participants 1.6 Concept of Equity Markets and Valuation 1.7 Role of Analyst 1.8 Role of Equity Research in Capital Market 1.9 Different approaches of Equity Research

2. Economic Analysis 2.1 Need and advantages of economic analysis 2.2 Inter-relationship between Stock Markets and Macroeconomy 2.3 Index and Indicators 2.4 Interest Rates 2.5 Fiscal and Monitory Policy

3. Corporate Finance 3.1 Fundamentals of Business Finance, Analysis and Investment 3.2 Financial Management 3.3 Financial Evaluation of Investments 3.4 Evaluating Marketable Securities 3.5 Financial Decisions 3.6 Capital Structure 3.7 Value and Capital Budgeting 3.8 Corporate Financial Planning 3.9 Cash and Credit Management

4. Industry Analysis 4.1 Competitive Business Strategies 4.2 Tools and Policies in Industrial Analysis 4.3 Porter’s Five Force Analysis and Generic Strategies 4.4 Industrial Forces

5. Company Analysis 5.1 Management System and Business Analysis 5.2 Types of Financial Statements

Certified Equity Research Analyst 5.3 Sources of data for Financial Statements 5.4 Financial Statement Analysis 5.5 Growth Rate Sustainability 5.6 Cash Flow Valuation Process 5.7 Capital Asset Pricing Model (CAPM) 5.8 Arbitrage Pricing Theory (APT) 5.9 Understanding Competition and Revenue Drivers

6. Valuation Valuation 6.1 Concept of valuation 6.2 Models of valuation 6.3 Technique of valuation 6.4 Forecasting and Growth Rate Analysis 6.5 Preparing Research Reports

7. Modeling 7.1 Discount cash Flow Valuation Model 7.2 Dividend Discount Models 7.3 Gordon Growth Model 7.4 Free Cash Flow Models 7.5 Relative Valuation Models 7.6 SOTP Valuation

Certified Equity Research Analyst

Course Outline Introduction Explains the goals of equity research involving holistic overview of the business and analyzing its qualitative and quantitative aspects Provides an overview of the process of equity research and essential elements for equity research Describes the different types of equity research such as private equity research, contra-investments etc Describes the process flow in equity markets and its functioning Describes the classification of stocks and various participants in the markets Provides a brief overview of the motives and process involved in equity valuation Describes the role of an analyst in the process of equity research and valuation Describes the concept of alpha and its usage in performance evaluation of an investment Explains the role of equity research in capital market Illustrates the different approaches to equity research such as Top-Down-BottomUp approach, DCF, DDM, FCFF etc

Economic Analysis Explains the need and advantages of economic analysis Explains the need and importance of macro and macro economic analysis Explains the inter-relationship between stock markets and macroeconomy Explains the role of indices and indicators in the process of equity research Explains the types of interest rates and their inter-relationship Provides a brief overview of the fiscal and monitory policies

Corporate Finance Explains the fundamentals of business finance, process involved in analysis and investment Explains the scope, elements and objectives of financial management Explains the functions of financial management and financial instruments Explains the process involved in the financial evaluation of investments and marketable securities Explains the concept of NPV and capital budgeting Illustrates the concept of financial planning and financing decisions Explains the concept of capital structure – corporate financing decisions, limits to the use of debt, valuation and capital budgeting for leveraged firms and dividend policy

Certified Equity Research Analyst Industry Analysis Analysis Explains the competitive business strategies and their sources of evaluation such as the industry, firm and competitive reaction Explains the various tools and policies in industrial analysis such as S-curve approach, SWOT analysis etc Illustrates the Porter’s Five Force Analysis and Porter’s Generic Strategies

Company Analysis Provides a brief understanding of the management system and overview of the steps involved in the process of business analysis Explains the different types of financial statements and their interpretation Explains the various sources of data collection for financial statements Describes the process of financial statement analysis Describes the Growth Rate Sustainability Explains the process of cash flow valuation and the techniques of valuation Explains the concept of Capital Asset Pricing Model (CAPM), assumptions of CAPM, problems of CAPM, concept of efficient frontiers etc Explains the Arbitrage Pricing Theory (APT) Models, relationship of with CAPM, relation between APT and asset management Provides a brief understanding of the role of competition and revenue drivers during company analysis

Valuation Explains the fundamental concepts of equity valuation Illustrates about the different types of valuation models such as Cash Flow Models, Asset Based Models, Relative Valuation and Option Based Models Illustrates the various valuation techniques such as interpreting financial statement, cash flow statements, ratio analysis etc Describes the process involved in forecasting and growth rate analysis Describe the process and steps involved in preparation of research reports

Modeling Explains in detail the purpose and application of Dividend Discount Models, Gordon Growth Model, Free Cash Flow Models, Relative Valuation Models and SOTP Valuation

Certified Equity Research Analyst

Sample Questions 1. If the capital markets are efficient, then the sale or purchase of any security at the prevailing market price is _______________. A. Generally a zero NPV transaction B. Always a positive NPV transaction C. Is always a negative NPV transaction D. None of the above

2. Financing decisions differ from investment decisions for which of the following reasons? A. You cannot use NPV to evaluate financing decisions B. The market for financial assets is more active C. It is easier to find financing decisions with positive NPV than to find investment decisions with positive NPV D. None of the above

3. Which of the following is not true about corporate securities market reforms? A. The secondary market overcame the geographical barriers by moving to screen based trading B. Counter-party risk is borne by investors C. The trading cycle in the stock exchanges follow rolling settlement D. The practice of allocation of resources among different competing entities as well as its terms by a central authority was discontinued.

4. If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1,10,000 1,10,000 through a stockstock-broker, then the maximum brokerage payable is _____. A. Rs. 4,000 B. Rs. 6,000 C. Rs. 2,000 D. Rs. 5,000

5. The losses in a synthetic long call are ____. A. limited B. depends on the strike price C. depends on the premium D. unlimited


1 (A), (A), 2 (B (B), 3 (B (B, 4 (D (D), 5 (A (A)

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