Learn NEPSE Investing

Learn how the Nepal stock market works: shares, IPOs, fundamentals, technical analysis and portfolio building. Free chapters on NepView.

Start Here

• Why This Book Exists. Two questions, and the difference between them.
• Contents. The whole book, at a glance.

The Basics

• What is a Share. Owning a slice of a real business.
• Fundamentals and Charts. Two questions, not two camps.
• Revenue and Profit. Topline, bottomline, and what's between.
• Market Capitalisation. What the whole company is priced at.
• Face Value, Bonus, Splits. Par value and share-count changes.
• Shareholding and Float. Who owns the company, and how much trades.
• 52-week High and Low. The trading range over a year.

The Ratios

• P/E Ratio. Price paid per rupee of earnings.
• Earnings Per Share (EPS). Profit sliced per share.
• Book Value and P/B. Net worth per share.
• Price-to-sales (P/S). Price per rupee of revenue.
• PEG Ratio. P/E adjusted for growth.
• Return on Equity (ROE). Profit from owners' money.
• Return on Assets (ROA). Profit from everything it owns.
• Return on Capital Employed. Profit from all long-term capital.
• Profit Margins. How much of each sale becomes profit.
• Dividend Yield. Cash returned per rupee invested.
• Dividend Payout Ratio. How much profit is paid out.
• Current and Quick Ratios. Can it pay its short-term bills?
• Interest Coverage. Can it comfortably pay its interest?
• Debt-to-equity. How much the company borrows.
• Asset Turnover. Sales generated per rupee of assets.

Banks

• Why Banks Are Different. Reading a bank is its own skill.
• Net Interest Margin (NIM). The bank's core spread.
• CASA Ratio. How cheap the bank's funding is.
• Non-performing Loans (NPL). Loans that aren't being repaid.
• Capital Adequacy (CAR). The bank's safety cushion.
• Cost-to-income. How efficiently the bank runs.

The Statements

• How to Read a P&L. From topline to bottomline.
• How to Read Quarterly Results. Momentum and seasonality.
• How to Read a Balance Sheet. What it owns and owes.
• How to Read Cash Flow. The profit you can actually bank.

The Annual Report

• The Annual Report, in Order. How a professional reads it top to bottom.
• The Auditor's Report. The gatekeeper of trust.
• Audit Opinions. Clean, qualified, adverse, disclaimer.
• Accounting Policies and Notes. Where the numbers are really made.
• Balance Sheet: Assets. Everything the company owns, line by line.
• Balance Sheet: Liabilities and Equity. What it owes, and what owners hold.
• P&L: Line by Line. From revenue to net profit, every step.
• Cash Flow: Line by Line. Turning profit into real cash.
• Connecting the Three Statements. How BS, P&L, and CFS lock together.
• Red Flags Professionals Watch. Where the numbers quietly lie.

Valuation

• Enterprise Value. The true cost to buy a business.
• Valuation and DCF. What a business is fundamentally worth.
• Economic Moats. What protects a company's profits.
• Cyclical vs Defensive. How the economy moves a business.
• Interest Rates and Stocks. Why rates move the whole market.
• Putting It Together. Reading a company as a whole.
• Common Traps. Where ratios mislead.
• A Note on Judgment. What the numbers can and can't do.

Charts

• What Technical Analysis Is For. Fundamentals pick the business. Technicals pick the moment.
• The Anatomy of a Candle. Four numbers, one picture.
• Single-Candle Signals. Doji, hammer, shooting star, marubozu.
• Multi-Candle Patterns. Engulfing, harami, stars, three soldiers.
• Volume, the Confirmation. How much conviction was behind the move.
• Support and Resistance. Prices the market remembers.
• Trend and Trendlines. Higher highs, lower lows.
• Breakouts and Fakeouts. The move that matters, and the one that traps you.
• Chart Patterns. Head and shoulders, triangles, flags.
• Gaps. When price skips a price.
• Timeframes. The same chart says different things at different scales.
• Moving Averages. Smoothing the noise to see the drift.
• Moving Average Crossovers. Fast crossing slow.
• MACD. The gap between two averages, plotted.
• RSI. How stretched the recent move is.
• Stochastic Oscillator. Where the close sits within the recent range.
• Bollinger Bands. Volatility drawn around the average.
• ATR. How far this thing typically moves.
• ADX. Is there a trend at all?
• Supertrend and Parabolic SAR. Trailing lines that flip.
• Ichimoku Cloud. Trend, support, and momentum in one picture.
• On-Balance Volume. Volume with a direction attached.
• VWAP. The average price everyone actually paid.
• The Rest of the Toolbox. The indicators you will meet, briefly.
• Confluence. When several things point the same way.
• Entries and Exits. Where the whole thing is supposed to pay off.
• Risk and Position Size. The part that decides whether you survive.
• What Technical Analysis Cannot Do. The honest chapter.

More on NepView

• NEPSE today: live index, share prices and market summary
• All NEPSE listed companies
• NEPSE floorsheet: every trade by broker and symbol
• Open and upcoming IPOs in Nepal
• NEPSE technical analysis: RSI, MACD and moving averages