Class Doubts - Module 3 - English Batch


It’s a common saying that for anything to turn out great, its fundamentals must be very strong. The base or pillars on which something is built or standing must be firm enough that nothing can shake its identity. In the same way, Fundamental analysis is a process of understanding the workings of a business at its most basic to know the right value of the business for the investment to learn if it is undervalued or overvalued. One should always analyze before investment and understanding the business model of the company is one such important step before doing the valuation of any company.

Fundamental analysis consists of both qualitative and quantitative analysis. For qualitative analysis, you need to understand company management and the intent of the people running the business to understand the company's fundamentals of business. On the numbers side, you need to understand the financial statements that convey the business activities and the financial performance of a company to understand and compare the return of the company to the profitability given by the FD like the Balance Sheet, Profit and Loss statement, and Cash Flow statement. By doing these analyses you can find the right value of the business for investment. 

It is similar to looking for the brand name, brand trust, brand performance, cost, Warranty period etc. before buying any gadget. And finally, you decide if it is worth buying. Out of all the choices we have, any decision can be made which can go right or can go wrong. 

And that’s why it was important to include Fundamental Analysis as the third module of my course, “A Complete Course on Indian Stock Market”. 

We always like to make informed decisions among all the choices we have and numbers help us in making such decisions. Don't take decisions based on gut feelings, instead go for exact numbers. Always look at trends and try to analyze the trend. 

Module 3 contains all the topics related to Fundamental analysis in very simple language. The chapters in module 3 are- 

Class 21. Introduction to fundamental analysis. 

Class 22. Qualitative aspect of fundamental analysis (Part 1). 

Class 23. Qualitative aspect of fundamental analysis (Part 2).

Class 24. Quantitative aspect of fundamental analysis. 

Class 25. An introduction to financial statements.

Class 26. Understanding Profit and Loss statements of the companies. 

Class 27. Understanding balance sheet of companies. 

Class 28. Understanding cash flow statements of companies. 

Class 29. Financial ratio analysis (Part 1). 

Class 30. Financial ratio analysis (Part 2). 

Class 31. Financial ratio analysis (Part 3).

Class 32. Understanding relative and intrinsic valuation & their difference. 

Class 33. DCF analysis for valuation.

Class 34. Equity research practice.

Once you become confident and start seeing the numbers, start seeing the character of the companies and the quality of the company. It will be easy for you to do certain filtration and you will easily understand that every activity which happens within the company either brings money to the table or takes out the money off the table.

If you have enrolled in my course, "A Complete Course On Indian Stock Market", and have any doubts about any of the video classes related to module 3, then you can ask by commenting below this blog.

Although, Zoom Link will also be sent to you. And I will regularly keep taking Live Doubt Sessions at different times to answer all your questions in Zoom live class. But still, you can also ask your questions here as well.

One such blog has been created for each module of the course. Please make sure that you ask only module-related questions with the name of the chapter.

Yours

Kundan Kishore

Any Doubt Related To Module 3 Can Be Posted Here.

Kundan Kishore
Curator of " A Complete course on Indian stock Market ".