The Wharton School

Applied Value Investing Certificate Program

The Wharton School

Finance and Wealth Management

About Programme

Learn to identify undervalued stocks

Warren Buffett famously said "Price is what you pay. Value is what you get." This program delivers an actionable framework for identifying undervalued stocks with the process-driven approach used by the world’s top investors.

Gain a tangible value investing skill set

This value investing course is for individual investors, investment advisors, and institutional investors seeking to put value investing strategies into practice. Learn directly from Wharton School faculty and the world’s top investors.

Earn a globally recognized certificate

Upon successful completion of the program, participants receive a digital certificate from Wharton Online and join a global community of institutional investors, investment advisors, and individual investors.

Programme Content

Over the course of eight weeks, you’ll learn the history, foundations, and applications of value investing, competitive analysis and strategy as well as the practical frameworks and technical skills that investment professionals use to evaluate opportunities. This investment certification program is delivered in a weekly self-paced online format and culminates in a closing ceremony and the receipt of a Certificate from Wharton Online.

Module 1

Week 1 is an introduction to Value Investing with an overview of the history and discussion of the principles applied by value investors. Supplementing Week 1 will be a guest speaker panel with Ricky Sandler of Eminence Capital. Ricky will discuss an “in the trenches” view of the investment philosophy and approach that he has honed over decades of successful experience on the buy-side.

History of Value Investing
Fundamental (value) investing explained
Introduction of the relationship between Price (P) and Value (V)
Value investing principles

Module 2

Module 2 lays down the groundwork concepts of market efficiency, indexing, and alpha measurement. Learners will be introduced to frameworks for understanding and attributing stock price movements to specific underlying factors. The module concludes with situations where the market offers mispricing, expectations gaps in stock investing, and the many faces of mispricing, and introduce a framework for solid fundamental investing.

An academic vs. practitioner's view of market efficiency
The Wisdom of Crowds
Why stocks move up & down
The importance of investor expectations
Variant perspective, analytical edge, and catalysts

Module 3

Students will conduct a deep dive on a business to understand its moats as well as the primary drivers of a company’s value. As part of the research process, students will learn how to evaluate revenue growth and how it influences a stock’s value as it flows through the company’s financials. The content also will cover how to discern why an investment opportunity exists and articulate the catalyst path to stock price movement.

Foundations of Corporate Finance
The drivers of value: ROIC, Growth, Reinvestment
Cost of capital and capital structure
Measuring and Forecasting Performance
Profitability Metrics and Multiples (EPS, P/E, EV/EBITDA)
Introduction to Valuation: Concepts and Methods
Relative valuation (comparable company analysis)
Intrinsic valuation (discounted cash flow analysis)

Module 4

Students will conduct a deep dive on a business to understand its moats as well as the primary drivers of a company’s value. As part of the research process, students will learn how to evaluate revenue growth and how it influences a stock’s value as it flows through the company’s financials. The content also will cover how to discern why an investment opportunity exists and articulate the catalyst path to stock price movement

Capital Markets Foundations & The IPO Process
The FEV (fundamentals, expectations, valuation) Framework
Building a Forecasting Architecture
Top-7 "must-haves" for a Portfolio Manager in a model
Full overview of a deep dive process
Model sections, including comps/DCF/deep dive analysis/earnings power
How to effectively read and interpret company reports
Fundamentals of a Management Quality Assessment
Ingredients of "Everything There Is To Know" ("ETIK")

Module 5

Module 5 builds on the learning objectives of the prior module, focusing on practical aspects of developing a contrarian thesis. The module consludes with a deep dive into a company’s competitive strategy, barriers to entry, and differentiation.

Practical tools for developing a contrarian thesis: Sentiment analysis, evaluating insider buying, and understanding herd mentality
Assessing the competitive advantages of a business
Impact of barriers to entry on return on invested capital (ROIC)
The Focus Five: top drivers of business value creation

Module 6

Students will learn about disaggregating growth and assessing expectations. Risk and Uncertainty will also be covered as they tie into evaluating a company’s long-term growth prospects. There is supplemental content on Management, Boards, and Corporate Governance.

Disaggregating revenue growth to understand key drivers
Assessing Risk
Capital allocation, shareholder activism, and corporate governance

Module 7

Students will gain insight into the ins and outs of an applied value investing process through deep dives on topics such as information gathering, model analysis, and crafting a fully-formed thesis. Students will hear from Matt Ober on alternative data and Freddy Brick on short selling.

Efficiency and the time management during research
A system for effective information management: Checklists, Scenario Analysis Premortems, an Unkown Unknowns
The "sniff test" and how to "fish where the fish are"
The 90% rule for idea selection

Module 8 (ELECTIVE)

Buy-Side Career Trajectory: This elective module focuses on considerations specific to students pursuing professional investment roles on the "buy-side". Students will learn how to most effectively allocate time in both rolling out and maintaining coverage as well as a process for relentlessly tracking core metrics across their sector coverage
Pitching a Stock: This module is focused on taking a stock thesis and communicating it to others. Students will learn how to present an idea to audiences including PMs or other investors. Students will hear from Francois Trahan on Macro frameworks for equity analysts.
The active management EcosystemIn this capstone, students will learn about the various avenues in which value investing may be applied including careers and the different traits required at different firms as well as how to be a great overall analyst.

Programme Audience

The Wharton & Wall Street Prep Applied Value Investing Certificate Program is designed for individual investors managing their own stock portfolio, investment advisors seeking to better serve clients, aspiring hedge fund analysts seeking to understand institutional-grade value investing, and anyone looking to learn to invest money with an institutional lens.

Individual Investors

Individuals who have a passion for building wealth and currently (or are looking to) manage their own portfolios as a personal interest, outside of professional financial careers.

Investment Professionals

Research analysts and portfolio managers who want to build practical skills in applied value investing.

Registered Investment Advisors (RIAs)

Investment advisors seeking to better serve clients by deepening their investment experience and distinguishing themselves from other RIAs in the marketplace.

Allocators

Professionals charged with evaluating fund managers for diverse institutional portfolios.

Family Offices

In-house professionals or principals looking to implement institutional-quality research practices or evaluate third-party fund managers.

Wealth Managers

Wealth managers seeking to build in-depth analytical skills, apply a long-term value focus, and enhance client trust.

Financial Planners

Financial planners who want to build well-rounded, client-specific portfolios that focus on long-term value and enhance their professional credibility and differentiation.

Career Switchers

Early to mid-career professionals seeking to transition into buy-side equity investing.

Students

Undergraduate and graduate business, finance and accounting students applying for internships and full-time roles.

Wealth Manager, Financial Planner, Registered Investment Advisor (RIA)

Investment Banking, Private Equity, Sell-Side Equity Research

Accounting, Data Providers

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Applied Value Investing Certificate Program | The Wharton School