Vskills Certification in Equity Research focuses on developing the necessary skills for the purpose of advising investors and financial institutions to make profitable investment decisions in the capital market by providing a brief overview of the global markets and an understanding of the stock market movements. The certification assesses the candidate’s qualitative and quantitative skills for stock evaluation, analyzing and interpretation of annual reports and the basic techniques of valuation. http://www.vskills.in/certification/Certified-Equity-Research-Analyst

1. Certified Equity Research Analyst
VS-1010

2. Certified Equity Research Analyst
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CertifiedCertifiedCertifiedCertified Equity Research AnalystEquity Research AnalystEquity Research AnalystEquity Research Analyst
Certification CodeCertification CodeCertification CodeCertification Code VS-1010
Vskills Certification inVskills Certification inVskills Certification inVskills Certification in Equity ResearchEquity ResearchEquity ResearchEquity Research focuses on developing the necessary skills for the
purpose of advising investors and financial institutions to make profitable investment
decisions in the capital market by providing a brief overview of the global markets and an
understanding of the stock market movements. The certification assesses the candidate’s
qualitative and quantitative skills for stock evaluation, analyzing and interpretation of annual
reports and the basic techniques of valuation.
Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?
This Course is intended for professionals and graduates wanting to excel in the field of
equity research and valuation. It is also well suited for those who are already working and
would like to take certification for further career progression.
Vskills Certification in Equity Research is for those candidates looking for opportunities
in equity research and valuation division. The certification can help candidate
differentiate in today's competitive job market, broaden their employment opportunities by
displaying their advanced skills, and result in higher earning potential.
Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?
Job seekers looking to find employment in investment houses, brokerage firms, KPOs,
insurance firms etc, students generally wanting to improve their skill set and make their CV
stronger and existing employees looking for a better role can prove their employers the
value of their skills through this certification.
Test Details:Test Details:Test Details:Test Details:
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in
this module.
Fee Structure:Fee Structure:Fee Structure:Fee Structure:
Rs. 4,500/- (Includes all taxes)

3. Certified Equity Research Analyst
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Companies thCompanies thCompanies thCompanies that hireat hireat hireat hire VskillsVskillsVskillsVskills CertifiedCertifiedCertifiedCertified Equity Research AnalystEquity Research AnalystEquity Research AnalystEquity Research Analyst
Vskills Certified Equity Research Analyst might find employment in big or small
investment houses, mutual funds, insurance houses, brokerage firms or KPO, Venture
Capital and Credit Rating firms.

4. Certified Equity Research Analyst
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Table of Content
1.1.1.1. IntroductionIntroductionIntroductionIntroduction
1.1 Goals of Equity Research
1.2 Elements of Equity Research
1.3 Process of Equity Research
1.4 Types of Research
1.5 Classification of Stocks and Market participants
1.6 Concept of Equity Markets and Valuation
1.7 Role of Analyst
1.8 Role of Equity Research in Capital Market
1.9 Different approaches of Equity Research
2.2.2.2. Economic AnalysisEconomic AnalysisEconomic AnalysisEconomic Analysis
2.1 Need and advantages of economic analysis
2.2 Inter-relationship between Stock Markets and Macroeconomy
2.3 Index and Indicators
2.4 Interest Rates
2.5 Fiscal and Monitory Policy
3.3.3.3. Corporate FinancCorporate FinancCorporate FinancCorporate Financeeee
3.1 Fundamentals of Business Finance, Analysis and Investment
3.2 Financial Management
3.3 Financial Evaluation of Investments
3.4 Evaluating Marketable Securities
3.5 Financial Decisions
3.6 Capital Structure
3.7 Value and Capital Budgeting
3.8 Corporate Financial Planning
3.9 Cash and Credit Management
4.4.4.4. Industry AnalysisIndustry AnalysisIndustry AnalysisIndustry Analysis
4.1 Competitive Business Strategies
4.2 Tools and Policies in Industrial Analysis
4.3 Porter’s Five Force Analysis and Generic Strategies
4.4 Industrial Forces
5.5.5.5. Company AnalysisCompany AnalysisCompany AnalysisCompany Analysis
5.1 Management System and Business Analysis
5.2 Types of Financial Statements

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5.3 Sources of data for Financial Statements
5.4 Financial Statement Analysis
5.5 Growth Rate Sustainability
5.6 Cash Flow Valuation Process
5.7 Capital Asset Pricing Model (CAPM)
5.8 Arbitrage Pricing Theory (APT)
5.9 Understanding Competition and Revenue Drivers
6.6.6.6. ValuatValuatValuatValuationionionion
6.1 Concept of valuation
6.2 Models of valuation
6.3 Technique of valuation
6.4 Forecasting and Growth Rate Analysis
6.5 Preparing Research Reports
7.7.7.7. ModelingModelingModelingModeling
7.1 Discount cash Flow Valuation Model
7.2 Dividend Discount Models
7.3 Gordon Growth Model
7.4 Free Cash Flow Models
7.5 Relative Valuation Models
7.6 SOTP Valuation

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Course OutlineCourse OutlineCourse OutlineCourse Outline
IntroductionIntroductionIntroductionIntroduction
Explains the goals of equity research involving holistic overview of the business
and analyzing its qualitative and quantitative aspects
Provides an overview of the process of equity research and essential elements for
equity research
Describes the different types of equity research such as private equity research,
contra-investments etc
Describes the process flow in equity markets and its functioning
Describes the classification of stocks and various participants in the markets
Provides a brief overview of the motives and process involved in equity valuation
Describes the role of an analyst in the process of equity research and valuation
Describes the concept of alpha and its usage in performance evaluation of an
investment
Explains the role of equity research in capital market
Illustrates the different approaches to equity research such as Top-Down-Bottom-
Up approach, DCF, DDM, FCFF etc
Economic AnalysisEconomic AnalysisEconomic AnalysisEconomic Analysis
Explains the need and advantages of economic analysis
Explains the need and importance of macro and macro economic analysis
Explains the inter-relationship between stock markets and macroeconomy
Explains the role of indices and indicators in the process of equity research
Explains the types of interest rates and their inter-relationship
Provides a brief overview of the fiscal and monitory policies
CorporateCorporateCorporateCorporate FinanceFinanceFinanceFinance
Explains the fundamentals of business finance, process involved in analysis and
investment
Explains the scope, elements and objectives of financial management
Explains the functions of financial management and financial instruments
Explains the process involved in the financial evaluation of investments and
marketable securities
Explains the concept of NPV and capital budgeting
Illustrates the concept of financial planning and financing decisions
Explains the concept of capital structure – corporate financing decisions, limits to
the use of debt, valuation and capital budgeting for leveraged firms and dividend
policy

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Industry AnIndustry AnIndustry AnIndustry Analysisalysisalysisalysis
Explains the competitive business strategies and their sources of evaluation such
as the industry, firm and competitive reaction
Explains the various tools and policies in industrial analysis such as S-curve
approach, SWOT analysis etc
Illustrates the Porter’s Five Force Analysis and Porter’s Generic Strategies
Company AnalysisCompany AnalysisCompany AnalysisCompany Analysis
Provides a brief understanding of the management system and overview of the
steps involved in the process of business analysis
Explains the different types of financial statements and their interpretation
Explains the various sources of data collection for financial statements
Describes the process of financial statement analysis
Describes the Growth Rate Sustainability
Explains the process of cash flow valuation and the techniques of valuation
Explains the concept of Capital Asset Pricing Model (CAPM), assumptions of
CAPM, problems of CAPM, concept of efficient frontiers etc
Explains the Arbitrage Pricing Theory (APT) Models, relationship of with
CAPM, relation between APT and asset management
Provides a brief understanding of the role of competition and revenue drivers
during company analysis
ValuationValuationValuationValuation
Explains the fundamental concepts of equity valuation
Illustrates about the different types of valuation models such as Cash Flow
Models, Asset Based Models, Relative Valuation and Option Based Models
Illustrates the various valuation techniques such as interpreting financial
statement, cash flow statements, ratio analysis etc
Describes the process involved in forecasting and growth rate analysis
Describe the process and steps involved in preparation of research reports
ModelingModelingModelingModeling
Explains in detail the purpose and application of Dividend Discount Models,
Gordon Growth Model, Free Cash Flow Models, Relative Valuation Models and
SOTP Valuation

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Sample QuestionsSample QuestionsSample QuestionsSample Questions
1.1.1.1. If the capital markets are efficient, then the sale or purchase of any security at theIf the capital markets are efficient, then the sale or purchase of any security at theIf the capital markets are efficient, then the sale or purchase of any security at theIf the capital markets are efficient, then the sale or purchase of any security at the
prevailing market price isprevailing market price isprevailing market price isprevailing market price is _______________._______________._______________._______________.
A. Generally a zero NPV transaction
B. Always a positive NPV transaction
C. Is always a negative NPV transaction
D. None of the above
2. Financing decisions2. Financing decisions2. Financing decisions2. Financing decisions differ from investment decisions for which of the followingdiffer from investment decisions for which of the followingdiffer from investment decisions for which of the followingdiffer from investment decisions for which of the following
reasons?reasons?reasons?reasons?
A. You cannot use NPV to evaluate financing decisions
B. The market for financial assets is more active
C. It is easier to find financing decisions with positive NPV than to find investment
decisions with positive NPV
D. None of the above
3333.... Which of the following isWhich of the following isWhich of the following isWhich of the following is not truenot truenot truenot true about corporate securities market reforms?about corporate securities market reforms?about corporate securities market reforms?about corporate securities market reforms?
A. The secondary market overcame the geographical barriers by moving to screen based
trading
B. Counter-party risk is borne by investors
C. The trading cycle in the stock exchanges follow rolling settlement
D. The practice of allocation of resources among different competing entities as well as its
terms by a central authority was discontinued.
4444.... If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1,10,000,10,000,10,000,10,000
through a stockthrough a stockthrough a stockthrough a stock----broker, then the maximum brokerage payable is _____.broker, then the maximum brokerage payable is _____.broker, then the maximum brokerage payable is _____.broker, then the maximum brokerage payable is _____.
A. Rs. 4,000
B. Rs. 6,000
C. Rs. 2,000
D. Rs. 5,000
5555.... The losses in a synthetic long call are ____.The losses in a synthetic long call are ____.The losses in a synthetic long call are ____.The losses in a synthetic long call are ____.
A. limited
B. depends on the strike price
C. depends on the premium
D. unlimited
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