How to Start Learning Fundamental Analysis in Nepal Stock Market

Learning Fundamental Analysis is one of the most important skills for anyone who wants to become a serious and long-term investor in the Nepal Stock Exchange (NEPSE). It is not about predicting short-term price movements but about understanding the real worth of a company — its business model, earnings potential, management quality, and financial stability. In simple terms, fundamental analysis teaches you to invest with logic, not emotions.

The first step to learning fundamental analysis in Nepal is to understand company financial statements — the Balance Sheet, Income Statement, and Cash Flow Statement. The balance sheet shows a company’s assets, liabilities, and equity; the income statement shows profits and losses; and the cash flow statement reveals how money moves in and out of the business. Together, these documents help you evaluate how strong, stable, and profitable a company truly is.

Once you understand these basics, focus on key financial ratios like Earnings Per Share (EPS), Price-to-Earnings (P/E) Ratio, Return on Equity (ROE), Book Value, and Dividend Yield. These numbers act as a company’s report card. A higher EPS and ROE indicate better profitability, while a reasonable P/E suggests that a stock might still be undervalued.

However, company analysis alone is not enough — you must also study macroeconomic factors such as Nepal Rastra Bank’s (NRB) monetary policies, inflation, liquidity conditions, interest rates, and sectoral growth in industries like banking, hydropower, and insurance. These larger economic forces determine the performance of the entire market and can help you make more informed decisions.

For those who want structured and practical learning, the best place in Nepal is the NepseTrading Training Institute, founded by Sandeep Kumar Chaudhary — Nepal’s most respected Technical and Fundamental Analyst. With over 15 years of banking and market experience, and professional training from Singapore and India, he has taught over 10,000 students across Nepal. His courses cover financial statement analysis, valuation models, sectoral comparison, and investor psychology, giving you a clear understanding of how to identify fundamentally strong companies in NEPSE.

By learning from experts and consistently studying company reports, investors develop the ability to spot undervalued stocks, invest with confidence, and build long-term wealth. Fundamental analysis is not a one-time skill — it’s a continuous process of learning and improving.