Fundamental Analysis Module (Intermediate)
Fundamental analysis Module (Intermediate) is a stock valuation methodology arrived at by performing security analysis. An appropriate security analysis forms the basis of successful investment decisions. This module aims at providing a basic insight into fundamental analysis and various valuation methodologies used.
Exam Details
Before you jump in to pursue the Fundamental Analysis Module (Intermediate) exam you must have a complete understanding of the exam format. It is always important to be thorough with your research about the exam. This is a big time and monetary investment, so you need to be sure it’s the right certification for you.
The Fundamental Analysis Module (Intermediate) exam consists of 60 questions which have to be taken in a duration of 120 minutes. The exam consists of Multiple Choice and Multi-Response Questions and the minimum passing score is 60% however there is 0.25% negative marking for incorrect answers. The exam is only available in the English language and its validity period is 5 years. The cost Fundamental Analysis Module (Intermediate) is Rs 2006.
Eligibility Criterion
There is no eligibility criteria for this exam.
| Exam Name | Fundamental Analysis – Intermediate |
| Exam Duration | 120 |
| Exam Format | Multiple Choice and Multi-Response Questions |
| Exam Type | Intermediate |
| No. of questions | 60 |
| Pass score | 60% and above |
| Exam Fee | Rs 2006 |
| Exam Language | English |
| Validity | 5 Years |
Scheduling the exam
Now, that we have understood the exam details, lets understand how to schedule the exam.
Registration process
- Candidates can register online by accessing the link ‘Online Registration’ available under Education>Certifications>Online Register / Enroll.
- Once registered, you will get a unique NCFM registration number along with a user id and password. Confirmation will be sent to the email id and mobile number entered during registration.
- Using the same, you can access your online NCFM account to make payment / enroll for test/update address/check study material status/view certificates, etc.
- However, you are required to ensure that their latest address is updated in their online NCFM profile. To update the address candidates need to access the link ‘Edit Profile’ available in their NCFM online login.
- Please note that the NCFM registration number is unique and a candidate has to use the same NCFM registration number while enrolling for any module.
Online Payment Procedure
- Candidates can make payment online by accessing their online NCFM login through the login page available under Education>Certifications>Online Register / Enroll.
- Candidates need to enroll for the NCFM test within 90 days from the date of receipt of payment failing which he/she is required to enroll himself/herself again by paying the fees afresh at the prevailing fee structure.
- Fees once paid shall not be refunded.
- In case of any payment-related queries, please write to email ID: [email protected].
- Moreover, NSE Academy has introduced its payment gateway page for online payments. This new payment gateway is implemented on 17 Jan 2017:
- Visa/Master Credit Card
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- EMI option for Credit Card of selected Banks
Fundamental Analysis Module (Intermediate) FAQs
Get all your doubts and queries resolved with Fundamental Analysis Module (Intermediate) FAQs
Fundamental Analysis Module (Intermediate) Course Outline
Understanding the course outline is the next most important step. It familiarizes you with the exam format and its objectives. Fundamental Analysis Module (Intermediate) Exam outline includes 4 topics along with subtopics to provide further insights into the course. Therefore, it is advisable to create your study plan around these topics to achieve the certification.
1.Fundamental Analysis: An introduction
- What is fundamental analysis?
- Why is fundamental analysis relevant for investing? – Efficient Market. Hypothesis (EMH), Arguments against EMH, Does fundamental analysis work?
- Steps in Fundamental Analysis
2. Brushing Up the Basics
- Concept of “Time value of Money”
- Interest Rates and Discount Factors – Opportunity cost, Risk-Free Rate, Equity Risk Premium, The Beta, Risk-Adjusted Return (Sharpe Ratio)
3. Understanding Financial Statements
- Where can one find financial statements – The Director’s Report, The Auditor’s Report, Financial Statements: Balance Sheet, Income Statements, Schedules and Notes to the Accounts, Cash Flow Statement.
- Financial Statement Analysis and Forensic Accounting
- Comparative and Common-size financial statements
- Financial Ratios
- Du-Pont Analysis
- Cash Conversion cycle
- The Satyam case and need for forensic accounting
4. Valuation Methodologies
- Top-Down valuation (EIC Analysis) – Economy, Industry, Company
- Discounted Cash Flow (DCF) Models
- Dividend Discount Model (DDM)
- Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) based
DCF - Sum of the parts (SOTP)
- Price-to-Earnings (PE) ratio.
- Price to Book Value PB Ratio.
- EV/ EBITDA
- Price to Sales (P/S) Ratio
- Special cases of valuation – IPOs, Financial Services firms, Net interest mar with in (NIM), Firms negative cash flows, Acquisition valuation, Distressed companies.
Fundamental Analysis Module (Intermediate) Preparatory Guide
There are numerous preparatory resources for the exam. all you need to focus on is selecting the best resources according to your ease and level of understanding. This selection of resources will determine how well will you qualify for your exam. Let us have a look at a handful of the resources.
Step-1 Review the Exam Objectives
• Fundamental Analysis: An introduction
• Brushing up the Basics
• Understanding Financial Statements
• Valuation Methodologies
Step-2 Discover your Learning Resources
Fundamental Analysis Module (Intermediate) Study Guide
The Fundamental Analysis Module (Intermediate) Study Guide will provide you complete clarity about the exam questions and how to approach them while preparing you from the scratch.
Reference Books
Books are the best-valued resources for study. You can choose any book that suits your way of preparation. Make sure the content is understandable and the book offers you a lot of practice questions and has previous test papers. You can choose multiple books and can buy them or can refer to libraries. Books like Fundamental Analysis by Matthew Krantz should definitely be on your reading list.
Step-3 Join Online Communities
Joining an Online Community is certainly an ideal way to know your actual stand in the competition. Here, you can interact with your competitors, and keep yourself focused. The prospects of getting resolutions to an issue increase steeply when a greater number of people are involved. Also, multiple viewpoints make the stuff more dynamic and increase expand your domain. Moreover, these groups will help you stay up to date with the exam and will also boost your confidence.
Step-4 Practice tests
Once you are done with your preparation phase, your performance phase begins. This phase is also referred to as the self-evaluation phase as it helps you find out your core strengths and weak spots. Remember you can only start performing Fundamental Analysis Module (Intermediate) practice tests once you are done with your whole syllabus. Moreover, Practice tests are designed in such a manner that it helps the candidates to encounter the real exam environment around them. Take the Fundamental Analysis Module (Intermediate) Free Practice Test Now!
