Glossary

Each module breaks down a topic into small pages. Read in order if you're new; jump around if you know the basics.

Start here - how we read a company

If you've never read a company before, start here. Six short pages explain the questions we ask and the idea behind each section you see on a deep-dive page. After this, the rest of the glossary will feel like familiar territory.

  1. 1.Four questions we ask every company
  2. 2.Why we read three statements, not one
  3. 3.The idea behind reading the annual report
  4. 4.The idea behind listening to the concall
  5. 5.Why we track walk-the-talk
  6. 6.Why we screen for red flags
  7. 7.Why valuation is a range, not a number
  8. 8.How we score conviction

Financial Statements

The three core statements every listed company files: Profit & Loss (P&L), Balance Sheet, and Cash Flow. We walk through each line item, how it's calculated, and what to look for.

  1. 1.Three statements: a 5-minute overview
  2. 2.Profit & Loss (P&L) - overview
  3. 3.Revenue (top line)
  4. 4.COGS and Gross Profit
  5. 5.Operating expenses (SG&A)
  6. 6.EBITDA - what and why
  7. 7.Depreciation & Amortization
  8. 8.Operating profit (EBIT)
  9. 9.Other income
  10. 10.Interest expense
  11. 11.Tax
  12. 12.Net profit (PAT)
  13. 13.Balance Sheet - overview
  14. 14.Current vs non-current
  15. 15.Fixed assets (PPE)
  16. 16.Working capital
  17. 17.Debt and leverage
  18. 18.Equity and reserves
  19. 19.Cash Flow Statement - overview
  20. 20.Operating cash flow (CFO)
  21. 21.Investing cash flow (CFI)
  22. 22.Financing cash flow (CFF)
  23. 23.Free cash flow (FCF)

Quarterly & Annual Reporting

What a fiscal year looks like, what gets disclosed each quarter and once a year, and how to read the documents companies file.

  1. 1.Fiscal year and quarters
  2. 2.Quarterly results
  3. 3.Annual report - what to look for
  4. 4.Investor presentation
  5. 5.Concall (earnings call)
  6. 6.Management guidance

Investing Concepts

The frameworks every retail investor should understand before buying their first share - what risk really means, how valuation works, and how to read management.

  1. 1.What is risk in investing?
  2. 2.Forensic risk and red flags
  3. 3.Related-party transactions
  4. 4.Governance risk
  5. 5.Valuation fundamentals
  6. 6.P/E ratio
  7. 7.EV / EBITDA
  8. 8.Price-to-book (P/B)
  9. 9.Sector multiples
  10. 10.Margin of safety
  11. 11.Walk-the-talk: tracking promises
  12. 12.Cash conversion and earnings quality

Sector Guides

What to look for in the ten sectors that make up most of the Indian listed universe. Each guide covers business model, key metrics, common red flags, and how the sector is valued.

  1. 1.Banks and NBFC
  2. 2.IT services
  3. 3.Pharma
  4. 4.FMCG and consumer
  5. 5.Auto and auto components
  6. 6.Cement
  7. 7.Metals and mining
  8. 8.Power and utilities
  9. 9.Real estate
  10. 10.Chemicals
Glossary · GuidanceIQ