Guides12 guides26,050 words

12 long guides, taken from the course

Each one takes a question analysts get asked and works it all the way through, with the maths shown. They're 26,050 words in total, and you can read them here without an account.

• How to read an Indian annual report in 45 minutesA working order for reading an Indian annual report fast, starting at the auditor's report and the notes rather than the chairman's letter, with what to look for on each page.2,326 words
• ROCE against ROIC: which return on capital to use, and whenROCE and ROIC answer the same question with different denominators. What each includes, why the numbers differ, worked in rupees, and which one to use for an Indian company.2,054 words
• Promoter pledging: how to spot it and what it costs youWhat promoter pledging is, how to compute the figure that actually matters, why pledged shares transmit a promoter's private borrowing into a minority holder's loss, and where it is disclosed.2,049 words
• A DCF for beginners, worked in rupeesA discounted cash flow built from scratch in rupees, with every number shown: the cash flows, the discount rate, the terminal value, and an honest account of where the answer really comes from.2,292 words
• How to value a bank: price to book against return on equityWhy banks are valued on price to book rather than earnings, how the multiple follows from return on equity, and a worked valuation of an Indian bank with every number shown.2,346 words
• Reading a bank's asset quality: GNPA, NNPA, PCR and slippageWhat GNPA, NNPA, provision coverage and slippage actually measure, how Indian loan classification works, and how to read the four together so a deteriorating book shows up before it is reported.2,029 words
• The cash flow statement: why profit is not cashHow the three sections of a cash flow statement work, why a profitable company runs out of money, and the two checks that catch most accounting problems before anything else does.2,337 words
• The P/E ratio: what it means and when it liesWhat a price to earnings multiple actually contains, why a high one is not expensive and a low one is not cheap, the four situations where it misleads, and what to use instead.2,047 words
• Free cash flow: what it is, how to compute it, and where it goes wrongFree cash flow built from an Indian income statement step by step, the difference between the firm and equity versions, maintenance against growth capital spending, and the year-one trap.2,227 words
• Working capital and the cash conversion cycleHow to compute the cash conversion cycle from an Indian annual report, why it can be negative, what it costs to grow, and the reading that catches a deteriorating business first.2,035 words
• Bonus issue, stock split, rights issue and buyback: what actually changesFour Indian corporate actions that look similar and do different things. What each does to your shareholding, to the company's cash, and to the accounts, with the arithmetic worked.2,129 words
• How to read a DRHP before an IPOA working order for reading an Indian offer document: risk factors, objects of the issue, restated financials and the basis for the issue price, with what each section actually tells you.2,179 words