Stock Fundamental Analysis with Excel

Full Course Content Last Update 01/2019

Learn stock fundamental analysis through a practical course with Microsoft Excel® using Apple Inc. data for historical analysis. It explores main concepts from basic to expert level which can help you achieve better grades, develop your academic career, apply your knowledge at work or do your research as experienced investor. All of this while exploring the wisdom of Nobel Prize winners and best practitioners in the field.

Become a Stock Fundamental Analysis Expert in this Practical Course with Excel

• Understand main financial statements such as balance sheet, income statement and cash flow statement.

• Interpret financial ratios to analyze operating activities, investing activities, liquidity, solvency and profitability.

• Comprehend investment valuation ratios to assess relative magnitudes of stock price or enterprise value to key financial statements numerical values and corresponding yields.

• Estimate cost of equity through capital asset pricing model (CAPM), Fama-French three factors model or arbitrage pricing theory model (APT) and cost of capital through weighted average cost of capital model (WACC).

• Assess economic profit through economic value added model (EVA®) and observed market value added model (MVA).

• Approximate theoretical stock price through discounted cash flow models (DCF) such as discounted dividends model (DDM), discounted free cash flow to equity model (DFCFE) and discounted free cash flow to firm model (DFCFF).

• Estimate stock option prices through Black and Scholes model, one-step binomial tree model, two-steps binomial tree model and Monte Carlo Simulation method (MCS).

Become a Stock Fundamental Analysis Expert and Put Your Knowledge in Practice

Learning stock fundamental analysis is essential for finance careers in areas such as equity research, investment banking, private equity or venture capital. It is also indispensable for academic careers in finance or business research. And it is necessary for experienced investors research of stock fundamentals.

But as learning curve can become steep as complexity grows, this course helps by leading you step by step using Apple Inc. data for historical analysis and to achieve greater effectiveness.

Content and Overview

This practical course contains 49 lectures and 9 hours of content. It’s designed for all stock fundamental analysis knowledge levels and a basic understanding of Microsoft Excel® is useful but not required.

At first, you’ll learn how to perform stock fundamental analysis operations using built-in functions and array calculations. Next, you’ll learn how to do random number generation for option pricing calculation using Microsoft Excel® Add-in.

Then, you’ll define financial statements. For financial statements, you’ll define balance sheet, income statement and cash flow statement.

After that, you’ll define financial ratios and compare them with historical average and competitor. For financial ratios, you’ll define operating activities, investing activities, liquidity, solvency and profitability areas. For models based on financial ratios, you’ll define DuPont analysis, Altman Z-Score and Piotroski F-Score.

Later, you’ll define investment valuation ratios and compare them with historical average, competitor, market benchmark and risk-free rate of return. For investment valuation ratios, you’ll define price ratios, enterprise value ratios and yield ratios.

Next, you’ll define cost of equity. For cost of equity, you’ll define capital asset pricing model (CAPM), Fama-French three factors model and arbitrage pricing theory model (APT). Then, you’ll define cost of capital. For cost of capital, you’ll define weighted average cost of capital model (WACC).

After that, you’ll define economic profit. For economic profit, you’ll define economic value added model (EVA®) and observed market value added model (MVA). Later, you’ll estimate theoretical stock price through discounted cash flow models (DCF). For discounted cash flow models (DCF), you’ll define discounted dividends model (DDM), discounted free cash flow to equity model (DFCFE) and discounted free cash flow to firm model (DFCFF).

Finally, you’ll define financial options. For financial options pricing, you’ll define Black and Scholes model, one-step binomial tree model, two-steps binomial tree model and Monte Carlo simulation method (MCS).