PASS Research Analyst Certification Examination

Beyond the Formula: Testing the Gordon Growth Model’s Assumptions

Imagine you are drafting an initiation report for a mature FMCG company listed on the NSE. You have projected dividends for the next five years, but for the terminal value, you rely on the Gordon Growth Model (GGM)....

Mastering the Equity Risk Premium in Indian Valuation Models

You are deep into a valuation exercise for a large-cap Indian FMCG firm. You have calculated the risk-free rate using the yield on the 10-year Government of India bond and determined the stock’s beta relative to the...

Terminal Value: Choosing Between Exit Multiples and Gordon Growth

Picture yourself in a research meeting at a Mumbai-based brokerage, defending your DCF model for a mid-cap IT firm. You have projected cash flows for the next five years, but the terminal value—which often accounts for...

Mastering Non-Cash Charges in Cash Flow Analysis

Imagine you are analyzing a mid-cap manufacturing company listed on the NSE. You have pulled the annual report to build your DCF model, and your eyes lock onto the Profit and Loss statement, which shows a significant...

Beyond the Base Case: Mastering Sensitivity Analysis in Valuation

You are presenting an earnings model for a prominent Indian FMCG firm to your investment committee. You have meticulously calculated the Free Cash Flow to the Firm (FCFF) and arrived at a target price that suggests a 15%...

Understanding Capital Structure: Beyond the Modigliani-Miller Theorem

Imagine you are drafting an initiation report for a manufacturing firm in the Nifty 500. You observe that management is aggressively replacing equity with long-term debt to boost their Return on Equity (ROE). Your mentor...

Aggregating Future Cash Flows: Mastering Enterprise Value Summation

You are deep into a valuation model for a mid-cap manufacturing firm in the Pune industrial belt. You have already projected the Free Cash Flows to the Firm (FCFF) for the next five years and calculated the respective...

Navigating the Transition: Modeling Perpetual Growth in DCF Valuations

Imagine you are drafting an initiation report for a burgeoning Indian SaaS company. You have meticulously projected revenue growth at 25% for the next five years, reflecting its expansion into Tier-2 cities and product...

Bridging Enterprise Value and Equity Value in Fundamental Analysis

You are mid-way through drafting an initiation report for a manufacturing firm listed on the NSE. Your valuation model produces a robust Enterprise Value (EV) of ₹5,000 crore, derived from your DCF projections. However,...

Mastering Risk-Adjusted Valuation: Moving Beyond Simple Discounting

You are sitting at your desk in a Mumbai-based brokerage, evaluating two companies in the same sector: a mature FMCG giant with consistent cash flows and an agile, export-oriented mid-cap software firm. Your supervisor...