Participants are advised to have attended either Finance for Non-Finance Investors – How to Read Financial Statements or Analysing Financial Statements - How to Interpret Financial Information to be able to fully benefit from this course.
Key Learning Outcomes:
Finding out how financial ratios can help you to pinpoint investments.
Discovering what the critical financial ratios are and how to calculate them.
Uncovering how to interpret the financial ratios to make investment decisions.
Digging into how to measure and read how pricey the stock market is using its P-E.
Looking for buy signals from financial ratios analysis.
Finding the right price for a stock using discounted cash flow.
Learning how to measure the ‘fiscal fitness’ of a company using the Altman Z-Score.
1. Using Financial Ratios to Find Out What’s Really Going on at a Company
a) Ratios: Learning What the Numbers are Really Telling You
b) The Universe of Financial Ratios
c) Understanding Variation Among Ratios
2. Which Financial Ratios You Should Know and How to Use Them?
a) Profitability Ratios: The Higher the Better (Mostly)
b) Efficiency Ratios: Making the Most of Your Assets
c) Liquidity Ratios: Can We Pay Our Bills?
d) Solvency Ratios: The Balancing Act
e) Valuation Ratios: How Pricey is the Stock? How Much Are You Paying for a Company’s Earnings?
3. Getting Familiar with the Price-to-Earnings Ratio
a) The 5 Variations of the P-E
b) Using the P-E to Judge Company Market Value (Stock Price)
c) Taking the P-E to the Next Level: The PEG (Is the Stock Pricey or Attractive?)
4. Getting a Handle on a Company’s Valuation
a) Price-to-Book Ratio
b) Dividend Yield
c) Earnings Yield
5. The Building Blocks of Return of Equity (ROE)
a) What Drives a Company’s ROE?
b) Decomposing the ROE into Component Parts – The ‘DuPont’ Analysis
c) Ranking Companies with the Help of ROE and Return on Assets (ROA)
6. Measuring the ‘Fiscal Fitness’ of a Company using the Altman Z-Score
a) Assessing a Company’s Health
b) Spotting a Company in Financial Distress
c) Crunching Many of the Things You Look For into A Single Number
7. Looking for Fundamental Reasons to Buy or Sell A Stock
a) Ten Ways to Identify Potential “Winners” and Weed Out Potential “Dogs”
b) Separating the Strong from the Weak Players
c) In Search of Super Returns in Stocks
Ten Ways to Identify Potential “Winners” and Weed Out Potential “Dogs”
In addition to lecture notes and case studies, all participants attending this program will be given a specially-designed checklist for this course by Instructor called the ‘Ten Ways to Identify Potential “Winners” and Weed Out Potential “Dogs” which will be a helpful tool for investment decision making in a company.
Mr. S. S. Sandhu FCA, CPA has extensive experience working within the financial markets sector in Asia. He has deep technical knowledge covering listed companies, multinationals, initial public offerings and mergers and acquisitions due diligence gained over 18 years at PricewaterhouseCoopers. He was also the CFO of one of the largest financial institutions in Singapore. He is both a Fellow Chartered Accountant and a Certified Public Accountant and has provided advisory services to many public listed companies, multinationals and government-linked companies on the development of financial reporting standards and changes in regulatory environment.
Mr Sandhu is a highly sought after speaker at financial seminars and courses around the world and has authored and contributed many publications on corporate governance, risk management and international accounting standards. He is highly rated by participants who have attended his programs. He is particularly well-known for his ability to translate complex and difficult financial concepts into plain language, and the use of real life experiences, easy to understand illustrations and case studies to help the candidate's ability to understand finance and accounting. He adopts a highly interactive approach in his workshops which makes learning both fun and memorable.