NISM Series XII Formula Sheet
Ten formulas, what each one is for, and a worked example.
Securities Markets Foundation is an introductory exam, so the maths is basic, but you need it. Questions ask for a return, a yield, a valuation ratio or a fund's NAV.
These ten formulas cover the paper's calculations, with a worked total-return example.
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The 10 Formulas
1
Formula
Total return on a share
Expression
(Sale price − Purchase price + Dividends) ÷ Purchase price × 100
Use it for
Return including both price gain and dividend.
2
Formula
Dividend yield
Expression
Dividend per share ÷ Market price × 100
Use it for
Income return from a share.
3
Formula
Earnings per share
Expression
Net profit ÷ Number of shares
Use it for
Profit attributable to each share.
4
Formula
P/E ratio
Expression
Market price ÷ EPS
Use it for
How many years of earnings the price represents.
5
Formula
Market capitalisation
Expression
Shares outstanding × Market price
Use it for
Size of a company; large, mid and small cap categories.
6
Formula
Book value per share
Expression
Net worth ÷ Number of shares
Use it for
Accounting value of each share.
7
Formula
Current yield (bond)
Expression
Annual coupon ÷ Market price × 100
Use it for
Income return on a bond at today's price.
8
Formula
Simple interest
Expression
Principal × Rate × Time
Use it for
Interest on deposits and simple debt instruments.
9
Formula
Compound value
Expression
Principal × (1 + r)ⁿ
Use it for
Growth of money over several periods.
10
Formula
Mutual fund NAV
Expression
(Assets − Liabilities) ÷ Units outstanding
Use it for
Price per unit of a mutual fund.
| # | Formula | Expression | Use it for |
|---|---|---|---|
| 1 | Total return on a share | (Sale price − Purchase price + Dividends) ÷ Purchase price × 100 | Return including both price gain and dividend. |
| 2 | Dividend yield | Dividend per share ÷ Market price × 100 | Income return from a share. |
| 3 | Earnings per share | Net profit ÷ Number of shares | Profit attributable to each share. |
| 4 | P/E ratio | Market price ÷ EPS | How many years of earnings the price represents. |
| 5 | Market capitalisation | Shares outstanding × Market price | Size of a company; large, mid and small cap categories. |
| 6 | Book value per share | Net worth ÷ Number of shares | Accounting value of each share. |
| 7 | Current yield (bond) | Annual coupon ÷ Market price × 100 | Income return on a bond at today's price. |
| 8 | Simple interest | Principal × Rate × Time | Interest on deposits and simple debt instruments. |
| 9 | Compound value | Principal × (1 + r)ⁿ | Growth of money over several periods. |
| 10 | Mutual fund NAV | (Assets − Liabilities) ÷ Units outstanding | Price per unit of a mutual fund. |
Worked Example: Total Return
A share bought at ₹500 pays a ₹10 dividend and is sold for ₹560 a year later.
- 1
Price gain
560 − 500 = ₹60.
- 2
Add the dividend
60 + 10 = ₹70.
- 3
Return
70 ÷ 500 × 100 = 14%.
Free account, this exam preselected.
Prices and Yields Move Opposite Ways
When a bond's price rises, its current yield falls, and the other way round. Foundation papers often test the direction rather than the number.
FAQs
Is Series XII a numerical exam?expand_more
Mostly not. It's a foundation paper, but a few questions use these basic formulas.
What's the difference between EPS and dividend per share?expand_more
EPS is the profit earned per share. Dividend per share is the part of it actually paid out.
Does a high P/E mean a share is expensive?expand_more
Not on its own. It can also mean investors expect strong growth. Compare it with peers and the company's own history.
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