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FinanceQuest
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Investment Analysis

Equity research skills: returns, risk, equity valuation, earnings models and investment write-ups.

5 lessons · 18 exercises · about 2 hours · 2 free lessons

You will be able to

  • Measure total shareholder return and tell arithmetic from geometric mean returns
  • Quantify risk with volatility, maximum drawdown and beta, and turn beta into a CAPM required return
  • Forecast earnings per share from segment volume, price and margin drivers
  • Value a share with P/E and PEG multiples and explain where they mislead

Designed for: Aspiring equity research and investment analysts, private investors who want a rigorous method, and finance professionals moving towards the buy side or sell side.

Investment Analysis Core

Module 1 · Returns and risk

  1. Measuring returnsTotal shareholder return, and why the arithmetic and geometric means tell different stories.22 minFree
  2. Volatility and drawdownsMeasure risk from a price history: sample standard deviation, annualised volatility and maximum drawdown.22 minMembers
  3. Estimating betaEstimate a share's beta from monthly returns, tell it apart from correlation, and turn it into a CAPM required return.25 minMembers

Module 2 · Equity research

  1. Building an earnings modelForecast a listed company's EPS from segment volumes, prices and margins, down to net income and per-share earnings.35 minFree
  2. P/E and PEG valuationValue a share with trailing and forward P/E and the PEG ratio, and recognise where earnings multiples mislead.25 minMembers