CFA Financial Analysis Course

Lesson 1 • Statistical Concepts for Finance

Introduces descriptive statistics, probability distributions, and sampling. Provides the quantitative language needed for risk measurement and return analysis.

Lesson 2 • The CFA Framework and Ethics

Introduces the CFA Institute's standards, code of ethics, and professional conduct requirements. Establishes the ethical baseline underpinning all subsequent analytical work.

Lesson 3 • Reading Financial Statements

Explains the structure of income statements, balance sheets, and cash flow statements. Connects accounting outputs to the analytical inputs used throughout the course.

Lesson 1 • Simulation and Scenario Analysis

Introduces Monte Carlo simulation and scenario-based stress testing. Connects probabilistic modelling to risk quantification and portfolio stress analysis.

Lesson 2 • Regression Analysis Applications

Teaches simple and multiple linear regression for financial forecasting. Students interpret coefficients, R-squared, and residuals in an investment context.

Lesson 3 • Time-Series and Forecasting Methods

Covers autoregressive models, moving averages, and trend analysis. Equips students to identify patterns and build short-term financial forecasts.

Lesson 1 • Intercorporate Investments and Consolidation

Covers equity method, full consolidation, and joint venture accounting. Explains how ownership structure affects reported assets, liabilities, and income.

Lesson 2 • Pension and Off-Balance-Sheet Items

Analyses defined-benefit pension obligations and operating lease adjustments. Restores hidden liabilities to the balance sheet for accurate gearing assessment.

Lesson 3 • Comparative and Trend Analysis

Applies common-size statements and multi-year trend analysis across peers. Enables benchmarking of financial performance within and across industries.

Lesson 4 • Ratio Analysis Framework

Organises liquidity, solvency, profitability, and efficiency ratios into a diagnostic system. Provides the analytical lens for evaluating operating and financial performance.

Lesson 1 • Working Capital Management

Covers cash conversion cycle, receivables, inventory, and payables management. Links operational efficiency to liquidity and short-term financing needs.

Lesson 2 • Capital Structure and Gearing

Examines trade-off theory, pecking order, and Modigliani-Miller propositions. Connects financing mix to firm value, tax shields, and financial distress costs.

Lesson 3 • Capital Budgeting Techniques

Covers NPV, IRR, payback period, and profitability index for project evaluation. Establishes the decision rules that drive corporate investment selection.

Lesson 4 • Dividend and Payout Policy

Analyses dividend irrelevance, signalling theory, and share repurchase mechanics. Evaluates how payout decisions affect shareholder value and capital allocation.

Lesson 1 • Market-Based Relative Valuation

Applies P/E, EV/EBITDA, P/B, and P/S multiples to peer comparison. Translates market pricing into actionable buy, hold, or sell signals.

Lesson 2 • Valuation in Practice

Integrates multiple valuation methods into a triangulated price range. Teaches reconciliation of conflicting model outputs and communication of investment conclusions.

Lesson 3 • Free Cash Flow Valuation

Teaches FCFF and FCFE derivation, forecasting, and discounting to intrinsic value. Preferred for firms with irregular dividends or complex capital structures.

Lesson 4 • Residual Income Valuation

Covers economic value added and residual income models linked to book value. Useful for financial firms where free cash flow is difficult to define.

Lesson 1 • Bond Pricing and Yield Measures

Covers full price, flat price, yield to maturity, and yield to call calculations. Establishes the pricing mechanics that underpin all fixed-income analysis.

Lesson 2 • Credit Analysis and Ratings

Covers credit rating frameworks, spread analysis, and default probability estimation. Enables assessment of issuer creditworthiness and relative bond value.

Lesson 3 • Duration and Convexity

Teaches Macaulay, modified, and effective duration alongside convexity adjustment. Quantifies interest rate sensitivity for portfolio hedging and risk management.

Lesson 4 • Structured and Securitised Products

Examines mortgage-backed securities, CDOs, and prepayment risk modelling. Extends credit analysis to complex structured instruments with layered cash flows.

Lesson 1 • Capital Asset Pricing Model

Derives the security market line, beta estimation, and alpha measurement. Links systematic risk to required return for individual securities and portfolios.

Lesson 2 • Risk Measurement Techniques

Covers Value at Risk, Expected Shortfall, tracking error, and drawdown metrics. Provides the risk vocabulary used in institutional portfolio management.

Lesson 3 • Modern Portfolio Theory

Covers mean-variance optimisation, the efficient frontier, and the capital market line. Establishes the theoretical basis for diversification and portfolio construction.

Lesson 4 • Factor Models and Risk Attribution

Introduces Fama-French, Carhart, and macroeconomic factor models. Decomposes portfolio returns into factor exposures for performance attribution.

Lesson 1 • Derivative Instruments Overview

Introduces forwards, futures, options, and swaps with their payoff structures. Establishes the contractual mechanics and risk transfer logic of each instrument.

Lesson 2 • Futures and Swaps Applications

Applies interest rate, currency, and equity futures and swaps to portfolio hedging. Demonstrates how derivatives modify duration, currency, and equity exposure.

Lesson 3 • Options Pricing and Strategies

Covers Black-Scholes-Merton, binomial trees, and the Greeks for option pricing. Applies pricing models to hedging strategies and structured payoff construction.

Lesson 4 • Private Equity and Hedge Funds

Covers buyout, venture capital, and hedge fund strategies, fees, and performance metrics. Evaluates illiquidity premiums and due diligence requirements for alternatives.