Our Structured Curriculum

The subject of finance revolves around maximizing investor value so we teach the concepts through an investment case study. We’ve found that explaining things from an investor’s perspective makes otherwise convoluted concepts very easy to understand. Even beginners with zero knowledge about finance and investing can learn to become sophisticated analysts. We start from the very basics and then gradually progress in difficulty and complexity. At the end, you’ll understand finance like a Wall Street professional.

Course 1

Stock Basics

This course goes over important stock basics and establishes the context for the analysis we’ll learn in the subsequent courses. We’ll learn what stocks are, how to calculate ownership interest, why stock prices move, different types of stocks, and our rights as shareholders. With a solid grasp around the stock basics, we’ll be able to understand the rationale behind the investing strategy.

12 Lessons 3 Quizzes
What You’ll Learn:
  • What a stock is
  • Investing strategy
  • Why stock prices change
  • Second-level thinking
  • Total Shareholder Return (“TSR”)
  • Share repurchase
  • Shareholder rights
  • Common vs. preferred stocks

Course 2

Investor Resources

This course goes over the investor resources that we’ll utilize to analyze stocks and where to find them. We’ll learn the US government’s stock market regulating body, the reports it require public companies to disclose, as well as the valuable resources companies provide through Investor Relations. Once we know the type of information available to us and where to find them, we’ll be able to perform our investment analysis.

13 Lessons 4 Quizzes
What You’ll Learn:
  • Introduction to SEC
  • How to pull SEC filings
  • 10-K, 10-Q, 8-K, S-1, etc.
  • Investor relations
  • Earnings call & earnings releases
  • Management presentations
  • Equity research
  • Third-party resources

Course 3

Corporate Valuation

Corporate valuation is the cornerstone of financial analysis. It’s the framework that quantifies what the company we’re analyzing is worth and how the market is pricing it. In other words, what investors are receiving relative to what they’re paying. With a solid understanding of corporate valuation, we’ll be equipped with a path forward to solve for a stock’s intrinsic value.

23 Lessons 4 Quizzes
What You’ll Learn:
  • Framework for corporate valuation
  • Enterprise Value &. Equity Value
  • Balance sheet items
  • Bridge from stock price to Enterprise Value
  • Dilutive securities
  • Treasury Stock Method (“TSM”)
  • Market pricing vs. intrinsic value
  • Valuation multiples

Course 4

Revenue Model

Revenue model relates to how businesses generate revenue. Specifically, we’ll learn how companies recognize revenue, how to think about revenue drivers and how to forecast revenue into the future. Since cash trickles down from revenue, understanding how a company generates revenue has important implications not only on the quality of the business but also on the amount of cash it’ll be able to generate. We’re now entering the stage of our analysis where we solve for the a company’s intrinsic value.

21 Lessons 5 Quizzes
What You’ll Learn:
  • Revenue recognition
  • Paid before vs. paid after
  • Revenue streams
  • Revenue drivers
  • Single-year and multi-year revenue growth
  • Average Selling Price (“ASP”)
  • Product mix
  • Building revenue model in Excel
  • Forecasting revenue

Course 5

Cost Structure

Cost structure refers to the types and characteristics of the expenses incurred by a company. The structure of the business’s expenses has important implications on its earnings power and cash generation capability. Most analysts only think of fixed cost vs. variable cost for cost structure but we teach you to think about cost based on four different characteristics.

32 Lessons 5 Quizzes
What You’ll Learn:
  • Expense recognition
  • Cost structure characteristics
  • Common expense line items
  • Cost ratios
  • Cost growth rates
  • Cost drivers
  • Forecasting cost

Course 6

Earnings Power

Earnings power refers to the business’s ability to generate profits. This course builds on top of the three previous courses on Corporate Valuation, Revenue Model and Cost Structure to develop an integrated understanding of how companies make money and how it impacts valuation. By the end of this course, we’ll be able to use the knowledge we developed to estimate future stock price and gauge the return on investment.

30 Lessons 6 Quizzes
What You’ll Learn:
  • GAAP vs. non-GAAP
  • Paper profit vs. cash profit
  • Profit metrics (i.e. gross profit, EBITDA, net income, EPS, etc)
  • Profit margins
  • Operating leverage
  • Financial leverage
  • How earnings drive valuation
  • Forecasting earnings
  • Using earnings to estimate Future Stock Price (“FSP”)

Course 7

Cash Flow

Cash flow is the movement of cash into and out of the company. This course culminates what we we’ve been building towards through the previous courses on Revenue Model, Cost Structure and Earnings Power to determine how much cash a company is generating. Ultimately, valuation depends on the company’s ability to generate cash. Once we know how much cash the company will generate in the future, we’ll have the main building block we need to determine the intrinsic value of the company and its stock.

31 Lessons 5 Quizzes
What You’ll Learn:
  • Introduction to Cash Flow Statement
  • The 3 different cash flow categories
  • Common cash flow line items
  • Growth CapEx vs. Maintenance CapEx
  • Levered Free Cash Flow (“LFCF”)
  • Unlevered Free Cash Flow (“UFCF”)
  • Drivers of UFCF and LFCF
  • How UFCF and LFCF drive valuation
  • Free Cash Flow Conversion and FCF Yield
  • Bridge from earnings to cash flow

Course 8

Intrinsic Valuation

Intrinsic valuation is the process to determine the intrinsic value of a company and its stock by analyzing how much cash it will generate in the future and the annualized rate of return that investors require. We’ll start by learning about the concept of time value of money, which underpins every intrinsic valuation analysis. Then we’ll learn about how we would determine the annualized rate of return that investors should require on any investment. And finally, we’ll tie everything together and learn how to determine what all the future cash the company will give back to us is worth to us today given the annual return on investment we want to earn.

30 Lessons 7 Quizzes
What You’ll Learn:
  • Discounted Cash Flow (“DCF”)
  • Time value of money
  • Weighted Average Cost of Capital (“WACC”)
  • Cost of Debt
  • Cost of Equity (including CAPM, beta, risk-free rate, etc)
  • Why debt is cheaper than equity
  • Treatment of non-cash items in DCF
  • End-of-year convention vs. mid-year convention
  • Dealing with the circular reference in DCF model
  • Margin of safety

Course 9

Risk Reward

Risk reward relates to the evaluation of the risk and reward profile of an investment opportunity to come to the decision of whether we should invest. Investing is not an exercise to invest in stocks with the highest return potential because that may come with disproportionally high risks and lead to permanent capital loss. Rather, astute investors look for opportunities that offer the most attractive risk-adjusted return. We’ll start by learning the different measurements of reward and the different types of risks. Then we’ll learn how to think about investments with the most attractive risk reward dynamics.

18 Lessons 4 Quizzes
What You’ll Learn:
  • Total return
  • Internal Rate of Return (“IRR”)
  • Multiple on Invested Capital (“MOIC”)
  • Pre-Tax Equity Gains
  • Systematic & unsystematic risks
  • Diversification
  • Why risk drives discount rate
  • Risk-adjusted return
  • Asymmetric risk reward dynamics
  • Building returns profile in Excel

Learn Finance and Investing for $30/mo

  • Structured curriculum
  • Easy to understand
  • Explains the logic behind key concepts
  • Set your own pace
  • Q&A with buyside investment professionals
  • Quizzes and worksheets