Investment Analysis and Portfolio Management

  1. Security Analysis: Equity Valuation
    1. Fundamental Analysis
      1. Top-Down Approach
        1. Economic Analysis
          1. Industry Analysis
            1. Company Analysis
              1. Integration of Analysis Levels
              2. Bottom-Up Approach
                1. Company-Specific Factors
                  1. Management Quality Assessment
                    1. Product and Service Analysis
                      1. Competitive Advantages
                    2. Financial Statement Analysis
                      1. The Balance Sheet
                        1. Assets
                          1. Current Assets
                            1. Non-Current Assets
                              1. Asset Quality Assessment
                              2. Liabilities
                                1. Current Liabilities
                                  1. Long-Term Liabilities
                                    1. Off-Balance-Sheet Items
                                    2. Shareholders' Equity
                                      1. Common Stock
                                        1. Retained Earnings
                                          1. Other Comprehensive Income
                                        2. The Income Statement
                                          1. Revenues
                                            1. Revenue Recognition
                                              1. Revenue Quality
                                              2. Expenses
                                                1. Cost of Goods Sold
                                                  1. Operating Expenses
                                                    1. Non-Operating Expenses
                                                    2. Net Income
                                                      1. Earnings Quality
                                                        1. Normalized Earnings
                                                      2. The Statement of Cash Flows
                                                        1. Operating Activities
                                                          1. Direct Method
                                                            1. Indirect Method
                                                            2. Investing Activities
                                                              1. Capital Expenditures
                                                                1. Acquisitions and Divestitures
                                                                2. Financing Activities
                                                                  1. Debt Financing
                                                                    1. Equity Financing
                                                                      1. Dividend Payments
                                                                      2. Free Cash Flow Analysis
                                                                      3. Financial Ratio Analysis
                                                                        1. Liquidity Ratios
                                                                          1. Current Ratio
                                                                            1. Quick Ratio
                                                                              1. Cash Ratio
                                                                              2. Profitability Ratios
                                                                                1. Gross Margin
                                                                                  1. Operating Margin
                                                                                    1. Net Profit Margin
                                                                                      1. Return on Assets
                                                                                        1. Return on Equity
                                                                                          1. Return on Invested Capital
                                                                                          2. Asset Management Ratios
                                                                                            1. Inventory Turnover
                                                                                              1. Receivables Turnover
                                                                                                1. Asset Turnover
                                                                                                  1. Working Capital Turnover
                                                                                                  2. Debt Management Ratios
                                                                                                    1. Debt-to-Equity Ratio
                                                                                                      1. Debt-to-Assets Ratio
                                                                                                        1. Interest Coverage Ratio
                                                                                                          1. Fixed Charge Coverage Ratio
                                                                                                          2. Market Value Ratios
                                                                                                            1. Price-to-Earnings Ratio
                                                                                                              1. Price-to-Book Ratio
                                                                                                                1. Price-to-Sales Ratio
                                                                                                                  1. Dividend Yield
                                                                                                                    1. Market-to-Book Ratio
                                                                                                                2. Equity Valuation Models
                                                                                                                  1. Discounted Cash Flow Valuation
                                                                                                                    1. Dividend Discount Models
                                                                                                                      1. Gordon Growth Model
                                                                                                                        1. Two-Stage Growth Model
                                                                                                                          1. Multi-Stage Growth Models
                                                                                                                            1. Variable Growth Models
                                                                                                                            2. Free Cash Flow Models
                                                                                                                              1. Free Cash Flow to Equity
                                                                                                                                1. Free Cash Flow to the Firm
                                                                                                                                  1. Residual Income Models
                                                                                                                                  2. Estimating Discount Rates
                                                                                                                                    1. Cost of Equity
                                                                                                                                      1. Weighted Average Cost of Capital
                                                                                                                                        1. Risk-Free Rate
                                                                                                                                          1. Equity Risk Premium
                                                                                                                                        2. Relative Valuation
                                                                                                                                          1. Price-to-Earnings Ratio
                                                                                                                                            1. Trailing P/E
                                                                                                                                              1. Forward P/E
                                                                                                                                                1. PEG Ratio
                                                                                                                                                2. Price-to-Book Ratio
                                                                                                                                                  1. Price-to-Sales Ratio
                                                                                                                                                    1. Enterprise Value Ratios
                                                                                                                                                      1. EV/EBITDA
                                                                                                                                                        1. EV/Sales
                                                                                                                                                          1. EV/EBIT
                                                                                                                                                          2. Peer Group Analysis
                                                                                                                                                            1. Comparable Company Analysis
                                                                                                                                                              1. Industry Multiples
                                                                                                                                                            2. Asset-Based Valuation
                                                                                                                                                              1. Book Value
                                                                                                                                                                1. Adjusted Book Value
                                                                                                                                                                  1. Liquidation Value
                                                                                                                                                                    1. Replacement Cost

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                                                                                                                                                                2. Macroeconomic and Industry Analysis

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                                                                                                                                                                4. Security Analysis: Fixed-Income