Track 03 · Advanced

Financial Analysis for Investors

This program gives investors a rigorous framework for reading and interpreting issuers' financial statements, from the balance sheet to the cash flow statement. Building on that foundation, you learn to apply profitability ratios, market multiples and the discounted cash flow (DCF) method, and then to integrate your analysis into a portfolio that is built and managed with discipline. All examples are hypothetical and intended for educational purposes only.

3 courses 9 lessons 2 h 16 min reading time Investors

What you will learn

  • Read and connect an issuer's balance sheet, income statement and cash flow statement.
  • Calculate and interpret profitability, leverage and liquidity ratios, including the DuPont breakdown of ROE.
  • Apply market multiples (P/E, P/BV, EV/EBITDA) and understand the limits of comparables analysis.
  • Build a simplified DCF model and test how sensitive the result is to key assumptions.
  • Measure portfolio risk using volatility, beta, maximum drawdown and the Sharpe ratio.
  • Draft an investment policy and choose a rebalancing rule that fits your risk profile.

Syllabus