Stock Fundamental Analysis with Excel

Learn stock fundamental analysis main concepts from basic to expert level through a practical course with Excel.
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Instructed by Diego Fernandez Business / Finance
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  • Lectures 50
  • Length 10 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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About This Course

Published 9/2015 English

Course Description

Course video lectures, content slides and Excel file constantly updated (latest: November 2016, audio re-editing)

Learn stock fundamental analysis through a practical course with Excel and real world examples. It explores main concepts from basic to expert level which will help you achieve better grades, review concepts and polish skills for your new finance career or make decisions as DIY investor. All of this while referencing best practitioners and Nobel Prize winners.

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

  • Understand main financial statements.
  • Interpret financial and investment ratios.
  • Define a company's cost of equity, debt and capital.
  • Valuate a company's theoretical stock price.
  • Calculate a company's stock option prices.
  • Explore the wisdom of best practitioners and Nobel Prize winners.

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 one of the two most common analysis techniques for DIY investors.

But as learning process can become difficult as complexity grows, this course helps by leading you through step by step real world practical examples for greater effectiveness.

Content and Overview

This practical course contains 50 lectures and 10 hours of content. It's designed for all stock financial analysis knowledge levels and a basic understanding of Excel is recommended.

At first, you'll understand main financial statements which are the balance sheet, income statement and cash flow statement. With these you'll calculate financial ratios to analyze a company's operations, investments, liquidity, solvency and profitability. Then, you'll estimate investment ratios with stock market data such as P/E and dividends yield for valuation purposes.

After that, you'll calculate a company's cost of equity, debt and capital with CAPM, Fama-French factors, APT and WACC models. With these you´ll estimate a company's stock theoretical value through EVA, DCF models and do a valuation by comparing it to its market price.

Finally, you'll calculate a stock's financial option prices with Black & Scholes, Binomial models and Monte Carlo Simulation method.

What are the requirements?

  • Spreadsheet software such as Microsoft Excel is required.
  • Practical example spreadsheet provided by instructor.
  • Prior basic spreadsheet software knowledge is recommended.

What am I going to get from this course?

  • Understand main financial statements: balance sheet, income statement and cash flow statement.
  • Interpret financial ratios to analyze a company’s operations, investments, liquidity, solvency and profitability.
  • Comprehend investment ratios to evaluate a company’s relationship between its financials and stock price, enterprise value and corresponding yields.
  • Define a company’s cost of equity through CAPM, Fama-French factors and APT models and also its cost of capital through WACC model.
  • Valuate a company’s theoretical stock price through economic value added (EVA) and discounted cash flow (DCF) models.
  • Calculate a company’s stock option prices through Black & Scholes, Binomial models and Monte Carlo Simulation method.
  • Explore the wisdom of best practitioners (Graham, Lynch, Greenblatt) and Nobel prize winners (Shiller, Fama, Sharpe) among many others.

What is the target audience?

  • Students at any knowledge level who want to learn about stock fundamental analysis.
  • DIY investors also at any knowledge level who desire to learn about stock fundamental analysis and put it in practice.
  • Finance interns or analysts who wish to review concepts and polish skills.
  • This course is NOT aimed at investors seeking to day trade stocks or options.
  • This course is NOT about “get rich quick” trading systems or magic formulas.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Course Overview
Article

Before starting course please download .XLSX Microsoft Excel file as additional resources.

7 pages

This lecture includes slides for course disclaimer, course overview and fundamental analysis lectures.

04:33

This lecture includes course objectives, benefits, requirements, disclaimer, target audience and instructor bio.

03:42

This lecture includes overview of seven sections in the course.

06:20

This lecture includes fundamental analysis definition, data sources and calculations guide.

Section 2: Financial Statements
13 pages

This lecture includes slides for financial statement overview, balance sheet, income statement and cash flow statement lectures.

06:01

This lecture includes financial statements definition and overview of balance sheet, income statement and cash flow statement.

16:49

This lectures includes:

  • Definition of balance sheet and calculation of accounting identity equation.
  • Definition and calculation of current assets, non-current assets, current liabilities, non-current liabilities and shareholders' equity.
  • Definition and calculation of property, plant and equipment (PPE) and retained earnings.
  • Relationship with cash flow statement through cash and cash equivalents account and with income statement with retained earnings account.

17:29

This lecture includes:

  • Definition of income statement and revenues.
  • Definition of operating expenses and calculation of gross margin and operating income.
  • Definition of non-operating expenses and calculation of income before taxes and net income.
  • Definition of addition to retained earnings and its calculation.
  • Definition and calculation of earnings before interest, taxes, depreciation and amortization (EBITDA).

13:17

This lecture includes:

  • Definition of cash flow statement.
  • Definition and calculation of increase/decrease in cash and cash equivalents, cash flow from operations, investments and financing.
Section 3: Financial Ratios
21 pages

This lecture includes slides for financial ratios overview, operating activity ratios, investment activity ratios, liquidity ratios, solvency ratios, profitability ratios, DuPont analysis, Altman Z-Score and Piotroski F-Score lectures.

07:28

This lecture includes definition of financial ratios and overview of:

  • Operating activity, investment activity, liquidity, solvency and profitability analysis areas.
  • DuPont analysis, Altman Z-Score and Piotroski F-Score models.
15:50

This lecture includes:

  • Definition of operating activity ratios.
  • Definition and calculation of inventory, receivables, payables, working capital turnover ratios.
  • Definition and calculation of inventory, receivables and payables average processing periods.
  • Definition and calculation of operating and cash conversion cycles.

07:43

This lecture includes:

  • Definition of investment activity ratios.
  • Definition and calculation of net fixed assets, total assets and equity turnover ratios.
09:15

This lecture includes:

  • Definition of liquidity ratios.
  • Definition and calculation of quick, current and cash to debt ratios.

11:55

This lecture includes:

  • Definition of solvency ratios.
  • Definition and calculation of debt to equity, debt to capital, debt to assets, equity multiplier and interest coverage ratios.
16:26

This lecture includes:

  • Definition of profitability ratios.
  • Definition and calculation of gross profit, operating profit and net profit margins.
  • Definition and calculation of return on equity (ROE), return on assets (ROA), return on capital (ROC), Joel Greenblat's return on capital (ROC) and cash flow return on assets (CFROA) ratios.

08:16

This lecture includes definition of DuPont analysis and calculation of three component decomposition of return on equity (ROE) ratio.

09:41

This lecture includes definition and calculation of Altman Z-Score as a measure of financial distress.

11:01

This lecture includes definition and calculation of Piotroski F-Score to identify value companies expected to outperform their benchmarks.

16:07

This lecture includes calculation summary of financial ratios and their analysis models.

Section 4: Investment Valuation Ratios
17 pages

This lecture includes slides for investment valuation ratios overview, price ratios, price ratios (Lynch, Graham, Shiller), enterprise value ratios, and yield ratios lectures.

07:07

This lecture includes definition of investment valuation ratios and overview of price, enterprise value and yield ratios.

18:24

This lecture includes:

  • Definition of price ratios.
  • Definition and calculation of price to earnings (P/E), price to sales (P/S), price to book value (P/BV), price to operating cash flow (P/OCF) and price to free cash flow (P/FCF) ratios.
  • Definition and calculation of free cash flow (FCF) and capital expenditures (CAPEX).
18:41

This lecture includes definition and calculation of Peter Lynch's price to earnings growth (PEG), price to Peter Lynch's fair value, price to Benjamin Graham criteria and Robert Shiller's price to earnings (CAPE10) ratios.

12:28

This lecture includes:

  • Definition and calculation of enterprise value, market capitalization, total debt and cash.
  • Definition and calculation of enterprise value to EBIT (EV/EBIT), enterprise value to EBITDA (EV/EBITDA), enterprise value to sales (EV/S) and enterprise value to free cash flow (EV/FCF) ratios.
16:14

This lecture includes:

  • Definition of yield ratios.
  • Definition and calculation of earnings yield, Joel Greenblat's earnings yield, dividends yield, dividends payout and cash return ratios.
13:10

This lecture includes calculation summary of investment valuation ratios.

Section 5: Cost of Equity, Debt and Capital
10 pages

This lecture includes slides for cost of equity, debt and capital overview, historical asset returns, capital asset pricing model (CAPM), Fama-French three factor model, arbitrage pricing theory model (APT), weighted average cost of capital model (WACC) lectures.

06:58

This lecture includes definition of cost of equity, debt and capital and overview of historical asset returns, capital asset pricing model (CAPM), Fama-French three factor model, arbitrage pricing theory model (APT) and weighted average cost of capital model (WACC).

15:31

This lecture includes:

  • Definition of historical asset returns.
  • Definition and calculation of nominal and real total asset returns.
  • Definition and calculation of arithmetic and geometric total asset returns' averages.
  • Definition and calculation of total asset returns volatility and Sharpe ratio.

12:56

This lecture includes:

  • Definition and calculation of expected asset return through capital asset pricing model (CAPM).
  • Definition and calculation of sensitivity of asset price to movement in market value (beta) and abnormal asset return (Jensen's alpha).
17:23

This lecture includes definition and calculation of expected asset return through Fama-French three factor model.

19:10

This lecture includes definition and calculation of expected asset return through arbitrage pricing theory model (APT).

12:23

This lecture includes:

  • Definition and calculation of cost of capital through weighted average cost of capital (WACC).
  • Definition and calculation of cost of debt.
Section 6: Stock Valuation Models
19 pages

This lecture includes slides for stock valuation models overview, economic value added (EVA), discounted dividends model (DDM), discounted free cash flow to equity model (DFCFE), discounted free cash flow to firm model (DFCFF) lectures.

05:49

This lecture includes definition of stock valuation models and overview of economic value added (EVA), discounted dividends model (DDM), discounted free cash flow to equity model (DFCFE) and discounted free cash flow to firm model (DFCFF).

13:12

This lecture includes:

  • Definition and calculation of economic value added (EVA), economic spread and economic profit margin.
  • Definition and calculation of observed market value added (MVA), observed market value added spread and observed market value added margin.
19:05

This lecture includes:

  • Definition of discounted dividends model (DDM)
  • Definition and calculation of dividends growth rates through PRAT model, Gordon model and H-model.
  • Definition and calculation intrinsic or theoretical value per share in present value through discounted dividends model (DDM).
17:05

This lecture includes:

  • Definition of discounted free cash flow to equity model (DFCFE).
  • Definition and calculation of free cash flow to equity (FCFE).
  • Definition and calculation of dividends growth rates through PRAT model, single-stage model and H-model.
  • Definition and calculation intrinsic or theoretical value per share in present value through discounted free cash flow to equity model (DFCFE).
14:28

This lecture includes:

  • Definition of discounted free cash flow to firm model (DFCFF).
  • Definition and calculation of free cash flow to firm (FCFF)
  • Definition and calculation of dividends growth rates through PRAT model, single-stage model and H-model.
  • Definition and calculation intrinsic or theoretical value per share in present value through discounted free cash flow to firm model (DFCFF).
10:22

This lecture includes calculation summary of economic value added (EVA) and discounted cash flow (DCF) stock valuation models.

Section 7: Financial Options
12 pages

This lecture includes slides for financial options overview, Black and Scholes option pricing model, one step Binomial Tree option pricing model, two step Binomial Tree option pricing model and Monte Carlo Simulation option pricing method (MCS) lectures.

05:30

This lecture includes definition of financial options, call and put options, American and European options; and an overview of Black and Scholes, Binomial Tree models and Monte Carlo Simulation method for option pricing.

16:28

This lecture includes definition and calculation of call and put option prices' straddle through Black and Scholes model.

12:33

This lecture includes:

  • Definition of binomial tree option pricing model.
  • Definition and calculation of one step binomial tree of forecasted stock prices and option payouts.
  • Definition and calculation of call and put option prices through one step binomial tree option pricing model.
16:17

This lecture includes:

  • Definition of binomial tree option pricing model.
  • Definition and calculation of two step binomial tree of forecasted stock prices and option payouts.
  • Definition and calculation of call and put option prices through two step binomial tree option pricing model.
17:02

This lecture includes:

  • Definition of Monte Carlo Simulation methods (MCS).
  • Definition and calculation of forecasted random future stock prices and option payouts.
  • Definition and calculation of call and put option prices through Monte Carlo Simulation method (MCS).
09:18

This lecture includes calculation summary of Black and Scholes, Binomial Tree models and Monte Carlo Simulation method (MCS).

Section 8: Course Bibliography
3 pages

This lecture includes course bibliography in alphabetical order with concept references.

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Instructor Biography

Diego Fernandez is author of high-quality online courses and ebooks at Exfinsis for anyone who wants to become an expert in financial data analysis.

His main areas of expertise are finance and data analysis. Within finance he has focused on stock fundamental, technical and investment portfolio analysis. Within data analysis he has concentrated on applied statistics, probability, optimization methods, forecasting models and machine learning. For all of this he has become proficient in Microsoft Excel®, R statistical software and Python programming language analysis tools. 

He has important online business development experience at fast-growing startups and blue-chip companies in several European countries. He has always exceeded expected professional objectives by starting with a comprehensive analysis of business environment and then efficiently executing formulated strategy.

He also achieved outstanding performance in his undergraduate and postgraduate degrees at world-class academic institutions. This outperformance allowed him to become teacher assistant for specialized subjects and constant student leader within study groups. 

His motivation is a lifelong passion for financial data analysis which he intends to transmit in all of the courses.

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