Course three
Fundamental Analysis
Read a NEPSE company’s accounts and judge what it is worth. Twenty teaching days across 22 chapters and 30 lessons — the three statements, the ratios, every sector on the exchange, then valuation and a company worked from raw statements to a conclusion. Formulas, worked examples in rupees and diagrams throughout.
Taught by Sandeep Kumar Chaudhary · free · physical and online · two weeks, starting Sunday.
Read this before you start.
Every company and every figure in this course is invented. They are built to be internally consistent so the arithmetic can be followed end to end, and they are labelled as illustrative wherever they appear. Real NEPSE financials change each quarter and would be stale in a lesson within months — so the method is taught here, and you apply it to a company’s own published report.
Nothing here is a recommendation to buy or sell anything. A valuation is an estimate built on assumptions, not a signal.
22 chapters · 30 lessons · 5h 55m
New to the market? Start with the beginner course — it assumes nothing and covers how a company is read.
Module 1 · Foundations
- Chapter 01
Day 1 — What fundamental analysis is
Intrinsic value against market price, the four investing styles, and why a valuation is never a signal on its own.
Module 2 · The three statements
- Chapter 02
Day 2 — The three statements and how they link
Income statement, balance sheet and cash flow are one system. Learn where each one connects to the other two.
- Chapter 03
Day 3 — The income statement
Revenue down to EPS, every margin along the way, and what each level of profit actually excludes.
- Chapter 04
Day 4 — The balance sheet
Assets, liabilities and equity, working capital, and what the two sides of the identity really mean.
- Chapter 05
Day 5 — Cash flow and earnings quality
Why profit is an opinion and cash is a fact, free cash flow, and the divergence that should always be investigated.
Module 3 · Ratios
- Chapter 06
Day 6 — Profitability and DuPont
ROE, ROA, ROIC and the decomposition that shows whether a high return came from skill or from leverage.
- Chapter 07
Day 7 — Growth analysis
YoY, QoQ and CAGR, why the base year decides the story, and which growth lines matter in which sector.
- Chapter 08
Day 8 — Valuation ratios
P/E, P/B, P/S, EV/EBITDA, PEG and the yields — with the reasons a low multiple is often low for a reason.
- Chapter 09
Day 9 — Dividend, debt and liquidity
Payout and sustainability, the gearing ratios, interest cover, and the current and quick ratios.
- Chapter 10
Day 10 — Efficiency and the cash conversion cycle
Turnover ratios, receivable and inventory days, and the cycle that shows how long cash is trapped.
Module 4 · Sector frameworks
- Chapter 11
Day 11 — Commercial banks
The full banking framework: NPL, CAR, NIM, cost of funds, CD ratio, provisioning and cost-to-income.
- Chapter 12
Day 12 — Development banks and finance companies
The same framework as a commercial bank, with the differences that matter: scale, geography and funding cost.
- Chapter 13
Day 13 — Microfinance
Borrower growth against loan-size growth, why NPL moves fast, and the cost structure of very small loans.
- Chapter 14
Day 14 — Hydropower
MW, CUF, PPA, DSCR and the project lifecycle — the sector where the accounts mislead most.
- Chapter 15
Day 15 — Hotels and manufacturing
Occupancy, ADR and RevPAR; then capacity utilisation, operating leverage and the inventory cycle.
- Chapter 16
Day 16 — Investment companies
NAV per share, premium and discount to NAV, and why the market price of a holding company drifts from its assets.
- Chapter 17
Day 17 — Life and non-life insurance
The insurance model, life fund and solvency, then loss ratio, expense ratio and the combined ratio.
Module 5 · Valuation and judgement
- Chapter 18
Day 18 — Intrinsic value: DCF, DDM and relative methods
Discounting cash flows, the Gordon growth terminal value, and why small assumption changes move the answer so much.
- Chapter 19
Day 19 — Screening, scoring and red flags
Building a screen that respects sector differences, a 100-point scorecard, and the warnings that should stop you.
- Chapter 20
Day 20 — Complete worked company
One invented NEPSE-style company taken from raw statements through ratios, valuation and a defended conclusion.
Module 6 · Reference
- Chapter 21
Master formula sheet
Every formula in the course in one place, with what a higher reading usually means and the exception that breaks it.
- Chapter 22
Checklist, final project and glossary
The one-page checklist to run on any company, the graded final assignment, and the vocabulary.
Questions people actually ask
- What does the Fundamental Analysis course teach?
- How to read a NEPSE company's accounts and judge what it is worth. It starts with the three statements and how they lock together, builds through profitability and DuPont, growth, valuation ratios, dividends, debt and liquidity, and the cash conversion cycle, then takes each sector on the exchange in turn, and closes with intrinsic value by DCF, DDM and relative methods, a screen and scorecard, a red-flag checklist, and one company worked from raw statements to a conclusion.
- Are the companies in the course real NEPSE companies?
- No. Every company and every figure is invented and labelled illustrative. They are built to be internally consistent so the arithmetic can be followed end to end. Real NEPSE financials change every quarter and would be stale in a lesson within months, so the method is taught here and you apply it to a company's own published report.
- Why does the course treat each sector separately?
- Because the ratios that matter are not the same for a bank as for a hydropower plant. A bank's deposits are liabilities, so debt-to-equity and the current ratio are meaningless there; it is judged on NPL, capital adequacy, net interest margin, cost of funds and the CD ratio instead. Hydropower is read through MW, CUF, the PPA and DSCR, hotels through occupancy, ADR and RevPAR, non-life insurers through the combined ratio, and investment companies through NAV and the discount to it.
- How is the course taught, and how long does it take?
- The material is organised as twenty teaching days plus two reference chapters, the master formula sheet and the checklist, final project and glossary. Sandeep Kumar Chaudhary teaches it as a two-week cohort, physically and online, starting on a Sunday. It is free — the cohort and the full written version here alike, with no fee and no sign-up.
- Do I need to know accounting before I start?
- No. Day 2 begins with the income statement, balance sheet and cash flow statement and how they connect, and every ratio is given as a formula, what each term means, what a high and a low reading suggest, a worked example in rupees, the NEPSE-specific reading and what it cannot tell you. If you are new to the market altogether, the free beginner course covers the basics first.
- Does the course tell me which shares to buy?
- No. A valuation is an estimate built on assumptions, not a signal, and nothing in the course is a recommendation to buy or sell anything. The final project is marked on method, evidence and honesty about uncertainty, not on reaching a particular conclusion.
Twenty teaching days, plus two reference chapters — the master formula sheet, and the checklist, final project and glossary. Every lesson listed above exists; the counts here are read from the pages themselves rather than written by hand, so they cannot drift.