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NISM Research Analyst Formula Revision Notes

This document defines and explains 30 different financial metrics used for analyzing companies, including metrics like market capitalization, earnings per share, price to earnings ratio, return on equity, debt to equity ratio, and more.

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Akshay Shetty
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3K views

NISM Research Analyst Formula Revision Notes

This document defines and explains 30 different financial metrics used for analyzing companies, including metrics like market capitalization, earnings per share, price to earnings ratio, return on equity, debt to equity ratio, and more.

Uploaded by

Akshay Shetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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NISM Research Analyst Formula Revision Notes

Current Share Price X Total Number Of


1 Market Capitalization:
Outstanding Shares

2 Earnings Per Share (EPS): Net Profit


Total Number Of Outstanding Shares

3 Price To Earnings (PE) Current Share Price


Ratio: Earnings Per Share(EPS)

4 EBITDA Margin: EBITDA


Net Sales

5 Profit After Tax


Margin (PAT): Profit After Tax
Net Sales

6 Return On Equity (ROE): Profit After Tax


Networth
7 Networth: Equity Capital+ Reserves and Surplus

Return On Capital EBIT


8
Employed (ROCE): Capital Employed
Long term Debt
9 Debt To Equity Ratio: Net Worth

Current Assets- Inventories


10 Quick Ratio: Current Liabilities

11 Accounts Receivable Revenue


Turnover: Accounts Receivable

12 Accounts Payable Turnover: Purchases


Accounts Payable

13 Asset Turnover Ratio: Net Sales


Total Assets

Sales
14 Inventory Turnover:
Inventory
Dividend Per Share
15 Dividend Yield:
Current Stock Price

Earnings Per Share (EPS)


16 Earning Yield:
Current Stock Price

17 Growth Adjusted Price To Price to Earnings(PE)


Earnings Ratio (PEG): Growth Rate

18 Price To Book Value Ratio: Price Per Share


Book Value Per Share

Enterprise Value (EV) To Enterprise Value


19
Capital Employed Ratio: Capital Employed
20 Sharpe Ratio: Return On Portfolio- Risk Free Rate
Standard Deviation

21 Treynor Ratio: Return On Portfolio- Risk Free Rate

Beta

22 Gordan Growth P=D1


Model: K-g

Where: K= cost of equity


g= constant dividend growth rate
P= Fair value of share
D1= Dividend expected to receive at end of the year

23 Jensen’s Alpha: Return On Portfolio-( Risk Free


Rate+ Market Premium)
24 Enterprise Value: Value of common equity+ value of non
controlling interest+ value of preferred
capital+ debt- cash and cash
equivalents and financial investments

25 Free Cash Flow to Firm Operating Cashflow - Capital


Model (FCFF): Expenditure - Tax benefit on
Interest payments

26 Free Cash Flow To Operating Cash Flow - Capital


Equity Model (FCFE) Expenditure- Interest Payments (+/-) Net
borrowings /(Repayments)

27 Interest Coverage Ratio: EBIT


Interest Ratio

Current Ratio: Current Assets


28
Current Liabilities
29 DuPont Analysis

Net Profit = Net Profit X Sales X Assets


Equity Sales Assets Equity

30 Price To Sales Ratio (P/S)


Current Market Price
Annual Net Sales Per Share

OR

Market Capitalization
Annual Net Sales

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