KMI-30 Index Karachi Meezan Index--Islamic Index---is main any k liye kuch conditions hoti hain k aap ka debt

itna zaida naa ho, aap ka business shareh ho etc is main

any k liye---- and Top 30 co of KMI are included in KMI-30 Index

yeh SDx nahi pata hai--jisy nikalana hai Rx=Return of security

 1.01--load add

Sharp Ratio
Alpha Value is based on CAPMM so wohi masly jo CAPM main hain

Agar aap ne galat Rm choose to sara CAPM galat ho jahy ga

overall risk nechy jahy ga but Be nahi q k yeh to systematic

risk ki waja se hota hai
Koi b Co jis k pas license ho as a Asset Management Co ka jo ek idara khol sakti hai jo legally ek Mudarba hota hai---us idary ko Mutual Fund kehty hain

Load means commision and front end means yeh upfront charge hota hai

A k pas 500K hain B k pas b C b etc--all invest in different Co---at Y.E koi khush ho ga koi nahi--b/c some Co grow some not
Mutual Fund--- A B C aur aisy hazarun log a kar sub paisa mutual fund ko de dety hain--Mutual fund invest that Rupees in different sector---Gain/loss
wo un sub ki investment main add kar deta hai
2 Benefits of Mutual Fund----zaida bandy hain to zaida paisy aye to bara portfolio banaiya ja sakta hai jis main bohot c securities--jitna bara portfolio
utna risk kam q k zaida diversified portfolio banaiya ja sakta hai
Mutual fund ne apny Qualified Analyst rakhy hun gay jin ka sara din kaam hi yeh k market pay nazar rakhein--achi jaga invest kar sakty hain
Jitna gain loss ata hai mutual fund wo inhi logon ko deta hai
Yeh Asset management ko kya faida hai---wo ek management fees leti hai Generaly 10% of Profits--jo aap ne kamaiya us main % mutual fund ka share
hai aur 10% aap ka hai
agar koi new banda a kar investment karna chahta hai means new units/share buy karna chahta hai to agar us unit ki value 100 hai to 101 ki mily gi q k
1 AMC commission charge kary gi
 [Link] want to invest---MF puchy ga k kis category main invest karna chahty hain--aam tor pay 3 categories hoti hain aur har ek k dono version hoty hain Conventional
b aur Islamic b 2. Islmic Equity ki NAV aaj kal 100 chal rahi hai NAV-means BV of Equity per share --- ek unit ki price 100 chal rahi hai par yeh aap ko mily ga 102
ka ek unit---yeh 2 Front end loa hai-- to aisy main ne 980 units buy kar liye

Two types

--Debt investments

99%
2
I decide Islamic Equity investment

jo 100 ki li thi wo barh kar 120 ho gyi q k Gains aye

hain saal k duran jo meri inv le kar agay inv ki thi us se

aap ne 100K invest kiya tha saal bad itna

sub exp - karny k bad aap ko wapis mil gya

commission in Pakaistan

Kuch MF Guranteed hoty hain means aap ko ek certain % of return Guranteed hoti hai to wahan pay---aisy funds main conditions b hoti hain k eg beshaq yeh Open
ended fund hai but aap 2 saal tak paisa nahi nikal sakty nikala to 4% panelty to aisy panelty ki surat main Back end load liya jata hai aam tor pay
 part c

assumption

part c

study in
future
 Expected ki jaga yeh 2 names use karny chahiyein--Expected ka lafaz estimated and required dono
ki jaga use ho sakta hai-so exact name bataa chahiye k wo require kya kar raha hai

Past paper Questions hain

systematic risk

assume--q k aur koi data nahi hai

happy
A co--list his securities in stock exchange--Co called listed Co---more than 500 listed Co in Pakistan--judge performance of market--to kya sub ko dekhun
--difficult- Stock exchange divided into indices---koi ek itni famous ho jati hai index to usy dekh kar puri market ko judge kiya jata hai--jaisy pakistan main
KSE 100 Index ki performance dekh kar puri stock exchange ko judge kiya jata hai

ki base pay 2 index har co ki companies

ko same weight assign

agar sub shares ki value le lun jis main

double counting ho gi

jis main double counting nahi q k sirf

free float shares le raha hun

OGDC ne 20% return diya aur smaller agar 100 Co hai to har ek ko
Co ne 30% to market pay zaida effect 1% aur agar 50 hain to har ek
OGDC daly ga--bari co k return ko zaida ko 2% weight assign
weight diya jata hai
Simple 2000 points ko us waqat ki top 100 co ki total worth k equal le liya gya phir jaisy usn ki worth increase decrease usi % se yeh points inc dec....
Value mens in k tamam listed shares ki total value

jaisy inflation indices main 100 benchmark

set kiya jata hai agly saal 10% prices barh
jayein to agly saal 110 points hun gay

har ek industry ka quota hai har industry se uthahein jati hain yeh co
COSUMER PRICE INDEX
assume yeh thi
us waqat Assume kar liya gya k us din Nov 1991 main
top 100 co ki jo b worth thi wo 2000 points k
equal hai

CG

Agar saal k shiruh main 40,000 pay thi aur end pay 48,000
to is ka matlab hai k Market ne 20% return diya hai is saal

Jab points uper ja rahy means Companies acha perform kar rahi hai--aur agar points gir rahy hain to matlab k Macro economic halat bury hain + investor
confidence hi kharab hai
Hamari stock market free float hai means wo double counting nahi karti aur total return index hai means wo Capital gain + reinvested dividend ko b
account for karti hai

same jaisy PTCL k shares Govt k pas wo b market main trade nahi ho rahy inhein Lockedin Shares khty hn
aur baqiyon ko kehty hain free float

main reflect hota hai

agar full
OGDC ki shares ki
value le lun

agar free float leta hun to jo KSE

of Mari Petroleum 100 ki apas main cross holding
hai un ki double counting nahi
ho gi

Homework
All past paper solve

study

solve

is saal market ne 15.5% return diya

Agar kisi year main point kam hun to Rm -ve aye ga to aisi surat main pechly 3 ya 5 saal ka avg liya jata hai Rm
FM main COmpany ko firm bolty hain

Business ki value nikalany

k 3 tariqy hain

Kisi b chalty huwy business ki value nikalana Business Valuation kehlata hai

--Aap Co buy kar rahy hain to us ki Value ki zarurat ho gi k kitny pay kharedein
--jab usy list karwa rahy hun means IPO karty huwy--ta k aap ko pata chaly k kis value
pay aap apny shares ki price demand karein market main
--Business sell---sahi value pay sell ya kam pay
-Financial reporting--Investment in A, Inv in S etc ki impairemnent testing k liye
Regulatory Purpose--Value per share wagera nikalany k liye
Financing Purpose--Bank se loan lety huwy
Asset Based Valuation--Agar aap kisi b business k Asset and Laibilities ki buniyad pay us ki value nikalein--wo aap us k Net assets ki BV ko +/- kar k nikal
sakty hain un ki sale price se b aur NRV le kar b

loan ka current portion

etc nahi yahan

A-L gives VE A-CL gives VE + VD

Forse sale value-

agar auction kiya
Published FS se jahy kis value pay
readily avaialble jayein gay
hoti hai

Net Asset=Equity-laibilities=Equity so us ki Equity ki BV dekh lein

CFA/CA wagera Financial A/L ki FV to chalo bata dein gay but PPE, Intangibles wagera ki to Engineer, Valuer hi bataheinn gay, PEC waly,--so ASSET
Based Valuation main FV & NRV ki agar baat to wahan CA/CFA ka kam kaam hai aur Egineer/Valuere ka zaida--CA waly sirf BV yahan BV ki base pay
asani se valuation kar sakty hain baqi main experts ki zarurat
 FREE CASHFLOW BASED VALUATION

Two types

Value of Equity +
Value of Debt

Aap ek Firm ki sub Free Cashflows ko discount kar lein us k WACC pay to is se us Firm
ki value a jati hai

NPV main Investment kehty thy aur yahan CAPEX kehty hain Capital expenditure

Why called Free??It is free for distribution--so aap equity walun ko un k hisy de dein aur Debt walun ko un
k hisy dein dein so it is called Free Cashflows.
Aap k pas NPV ki CFs ayein 100--aap ne 2 ka interest aur 8 ka principal b repay kiya hai ao net CFs=100-2-8=90 Net Cfs aur aap ne 20 ka loan b liya to
90+20=110 ki Net CFs
Duniya main almost Earning Multiple khatam hota ja raha hai q k duniya main new new method use ho rahy hain but Exam main zaida yahi ata hai

Per share b nikal

sakty hain total ki b

2.

Aaj kal to yeh Facebook whats app wagera---No of customer, Avg daily time spend by customer on APP--ki base pay value ho rahi hain
 Earning before interest, Tax, Dep, Amort.

3.
is Industry multiple ko use kar k us Industry ki kisi b Co
ki value nikal sakty hain aap

KPI=Key Performance Indicator, Jo Earning b ho sakta hai Revenue b

EBIDTA b kuch b ho sakta hai

Aap Multiple nikalo means Avg VE ko divided kar do KPI avg se us industry k to multiple nikal aye ga jisy multiply kar do KPI of that Co--Jis KPI se
multiple banaiya dusri Co k usi KPI se multiply karna hai

kon ka kahan multiple depend on industry

FMCG sector main Earning ka multiple chalta hai,
Internet based business, Digital service wagera main Revenue ka multiple chalta hai
Telecom and Banking sector main EBITDA ka multiple chalta hai
PL k owners k pas 90M shares hain aur DL k Owners k pas DL k 19.2 shares hain--- DL k yeh 19.2 Shares PL khared raha hai DL k owners se jis se DL k
owners k pas 0 Shares ho jayein gay DL k aur badly main DL k owners ko PL k 22.4 Shares ho jayein gay
Simple PL k 90 shares usi k purany owners k pas hain phir 22.4 us k new owners jo pehly DL k owners thy un k pas hn phr DL k 19.2 shares PL k ps hn
Finance main PL & DL ab ek hi entity hain so ab PL k owners ka in 2 main 80% stake hai aur DL k owners ka in 2 mai 20% stake hai

4 method to buy a Company

to DL owners

agar 100% acquire karna chahta hai DL ko

to DL ko kitny shares issue kary ga PL
Multiple zaida means utni aap k busines ki value zaida utna aap ko faida

Higher multiple wali co

acqure jis se aap ka b
multiple barh jahy

ghar k pas Zong & Telenor k tower lagy huwy

hain agar yeh 2 merger to ek tower hata dein
apas main mil jayein gay jis se cost saving-Duplicate Resourses
2 Manager hain ab ek kar do etc