NISM Research Analyst Exam 2026: Important Formula Guide:

50 important formulas explained simply, plus a beginner-friendly roadmap to passing the 2026 exam.

By the PassNISM Editorial Team, reviewed against the official NISM Series XV syllabus · Last updated: July 13, 2026

Disclaimer: This is an independent, editorial study guide for exam preparation purposes only. It is not published by NISM or SEBI and is not a substitute for the official workbook. Formula definitions and exam-pattern figures are cross-checked against nism.ac.in and sebi.gov.in; always confirm current details on those official sites before your exam.

The NISM Research Analyst exam, an important 2026 certification regulated by SEBI (Securities and Exchange Board of India) and administered by NISM (National Institute of Securities Markets), tests whether you can read a balance sheet, value a stock, and judge risk like a professional analyst. This simple guide walks beginners through what the exam covers, why it matters, who should take it, and how to prepare — followed by the 50 important formulas you actually need to memorize. For extra practice, try a free NISM Research Analyst mock test, work through chapter-wise sample questions, download condensed study notes, or review the exam-day checklist before your 2026 attempt.

What Is the NISM Research Analyst Exam?

The NISM Research Analyst Certification Examination (NISM Series XV) is a SEBI-mandated certification for individuals who research, analyze, or recommend securities in India, required under Regulation 7(2) of the SEBI (Research Analysts) Regulations, 2014. It covers financial statement analysis, valuation, and regulatory conduct — including rules around research on AIFs (Alternative Investment Funds, i.e. pooled investment vehicles like PE/hedge funds) and mutual fund NAV (Net Asset Value, the per-unit worth of a fund's holdings) — and is a prerequisite for registering as a Research Analyst with SEBI. In short: it's the exam that proves you can turn raw financial data into a defensible investment view.

Why Does the NISM Research Analyst Exam Matter?

Passing this exam isn't just a formality — it's a legal requirement for anyone in India who wants to publish research reports, give buy/sell recommendations, or work as a registered Research Analyst. Beyond compliance, it matters because:

SEBI registration is legally required to operate as a Research Analyst in India.
Employers (brokerages, AMCs, research firms) treat the certificate as a baseline hiring filter.
The formulas tested are the same ones used daily in equity research, credit analysis, and portfolio management.

Who Should Take the NISM Research Analyst Exam?

This certification is relevant for a specific set of roles, not everyone in finance. You should consider it if you are:

An aspiring or practicing equity/credit research analyst
A portfolio manager or investment advisor who publishes research
A finance student targeting roles in equity research, investment banking, or asset management
A working professional in a brokerage who issues stock recommendations or price targets

When Should You Start Preparing?

A realistic beginner's timeline for the NISM Research Analyst exam:

Weeks Before Exam	Focus
Week 1–2	Read the NISM workbook once; skim all chapters for structure
Week 3–5	Deep-dive financial statement analysis, valuation, and formulas (this guide)
Week 6	Attempt sample questions and a full-length mock test
Week 7	Revise weak areas, redo formula sheet, take 2–3 more mock tests
Week 8	Light revision only; avoid new topics

How Can You Pass the NISM Research Analyst Exam?

Get the official workbook — start with SEBI/NISM's prescribed study material.
Build a formula sheet — use the 50 formulas below as your master list.
Practice with a mock test weekly to track your accuracy under time pressure.
Drill sample questions chapter by chapter to close specific gaps.
Review regulatory/ethics sections — these are easy marks often ignored by beginners.
Simulate exam conditions in your final week: timed, no notes, full-length paper.

Exam pattern to plan around: 100 marks, 2 hours, and negative marking (a penalty deducted for each wrong answer — here, 25% of that question's marks) on every incorrect response. The passing score is 60%. Because guessing carries a real cost, only answer when you're reasonably confident, and mark uncertain questions for review instead of guessing blindly.

NISM Research Analyst vs NCFM: How Do They Compare?

Feature	NISM Research Analyst (Series XV)	NCFM
Regulator	SEBI-mandated	NSE-administered
Purpose	Legal requirement to register as a Research Analyst	Skill/knowledge certification, not a legal registration requirement
Core Focus	Valuation, financial statement analysis, ethics	Varies by module (technical analysis, derivatives, etc.)
Validity	3 years, renewable via CPE	Varies by module

What Are the 50 Must-Know Formulas?

These are grouped by category, exactly as they appear in a typical NISM Research Analyst formula sheet. Use them alongside sample MCQ practice to test recall.

Financial Statement & Profitability Formulas:

1. Revenue Growth Rate — measures how fast sales are increasing.
(Current Revenue − Previous Revenue) ÷ Previous Revenue × 100

2. Gross Profit — profit after production costs.
Revenue − Cost of Goods Sold

3. Gross Margin — pricing power and cost efficiency.
Gross Profit ÷ Revenue × 100

4. Operating Profit (EBIT) — profit from core operations.
Gross Profit − Operating Expenses

5. Operating Margin — operational efficiency.
EBIT ÷ Revenue × 100

6. Net Profit — final earnings after all expenses and tax.
Revenue − All Expenses − Tax

7. Net Profit Margin — profit per rupee of revenue.
Net Profit ÷ Revenue × 100

8. EBITDA — cash-like operating performance.
Net Profit + Interest + Tax + Depreciation + Amortization

9. EBITDA Margin — cross-industry comparison metric.
EBITDA ÷ Revenue × 100

10. Earnings Per Share (EPS) — profit per shareholder.
Net Profit ÷ Total Shares Outstanding

Valuation Formulas (Core of Equity Research):

11. Price to Earnings (P/E) Ratio
Market Price per Share ÷ EPS
(Forward P/E uses expected future earnings)

12. PEG Ratio — P/E adjusted for growth.
P/E ÷ Earnings Growth Rate

13. Price to Book (P/B) Ratio
Market Price ÷ Book Value per Share

14. Book Value per Share
(Total Assets − Liabilities) ÷ Shares

15. Enterprise Value (EV)
Market Cap + Debt − Cash
(EV/EBITDA is widely used in M&A)

16. Market Capitalization
Share Price × Total Shares

17. Dividend Yield
Dividend per Share ÷ Market Price × 100

18. Dividend Payout Ratio
Dividend ÷ Net Profit × 100

Liquidity & Solvency Ratios:

19. Current Ratio
Current Assets ÷ Current Liabilities

20. Quick Ratio
(Current Assets − Inventory) ÷ Current Liabilities

21. Debt to Equity Ratio
Total Debt ÷ Shareholders' Equity

22. Interest Coverage Ratio
EBIT ÷ Interest Expense

23. Debt Ratio
Total Debt ÷ Total Assets

Return Ratios (Highly Tested):

24. Return on Equity (ROE)
Net Profit ÷ Shareholders' Equity × 100

25. Return on Assets (ROA)
Net Profit ÷ Total Assets × 100

26. Return on Capital Employed (ROCE)
EBIT ÷ Capital Employed × 100

27. Asset Turnover Ratio
Revenue ÷ Total Assets

Cash Flow & Efficiency Metrics:

28. Free Cash Flow (FCF)
Operating Cash Flow − Capital Expenditure

29. Inventory Turnover Ratio
COGS ÷ Average Inventory

30. Receivables Turnover Ratio
Revenue ÷ Average Receivables

31. Cash Conversion Cycle (CCC)
Inventory Days + Receivable Days − Payable Days

Growth, Risk & Market Metrics:

32. CAGR
(Ending Value ÷ Beginning Value)^(1/n) − 1

33. Sharpe Ratio
(Return − Risk-Free Rate) ÷ Standard Deviation
(Beta, Alpha, and Standard Deviation are the related risk/volatility measures tested alongside this.)

Valuation Models Every Research Analyst Must Know:

34. Discounted Cash Flow (DCF)
Σ Cash Flow ÷ (1 + Discount Rate)^t

35. Terminal Value
FCF × (1 + g) ÷ (r − g)
g = Growth rate, r = Discount rate (usually WACC)

36. Weighted Average Cost of Capital (WACC)
WACC = (E / V × Re) + (D / V × Rd × (1 − T))

37. Cost of Equity (CAPM)
Re = Rf + β(Rm − Rf)

38. Margin of Safety
(Intrinsic Value − Market Price) ÷ Intrinsic Value

Note: this list mirrors the 50-formula structure used in most NISM Research Analyst study notes — several entries (e.g. Beta, Alpha, Standard Deviation) are tested as concepts rather than standalone numbered formulas. Cross-check the exact count against your official workbook.

What Do Sample Exam Questions Look Like?

The NISM Research Analyst paper has 80 standalone MCQs (1 mark each) plus 5 case studies (4 questions each, 20 marks total) — 100 marks in all, in 2 hours. Typical question patterns include:

Direct calculation: "A company has Net Profit ₹50 lakh and Shareholders' Equity ₹250 lakh. What is its ROE?" (Answer: 20%)
Definition-based: "Which ratio excludes inventory from current assets?" (Answer: Quick Ratio)
Applied scenario: "A stock trades at ₹400 with EPS ₹20 and expected earnings growth of 10%. What is its PEG ratio?" (Answer: 2.0)

Mini Case Scenario

Case: An analyst is reviewing a company with Revenue ₹800 crore, Net Profit ₹96 crore, and Shareholders' Equity ₹480 crore.
Q1: What is the Net Profit Margin? → 96 ÷ 800 × 100 = 12%
Q2: What is the ROE? → 96 ÷ 480 × 100 = 20%
Q3: If the stock trades at a P/E of 18 with EPS ₹15, what is the market price? → 18 × 15 = ₹270

Score Benchmarks

Passing score: 60 out of 100 marks (60%).
Negative marking: 25% of a question's marks deducted for each wrong answer — so a wrong 1-mark MCQ costs 0.25 marks.
Mock-test target: aim for a consistent 70%+ on timed, full-length mocks in your final week; exam-day pressure typically shaves off a few marks, so a comfortable buffer above 60% matters.

Most beginners scoring below the 60% passing benchmark on their first mock test are missing valuation-model questions (DCF, WACC, CAPM) — prioritize these in revision, then retest with a full mock test.

Which Exam Should You Choose? A Quick Decision Guide

If you plan to publish stock research or set price targets → the NISM Research Analyst exam is mandatory for you.
If you are a dealer or broker executing trades only → you likely need a different NISM series (e.g., Series VIII) rather than Research Analyst.
If you are a student exploring finance broadly → NCFM modules can be a lighter starting point before attempting NISM Research Analyst.
If you already work in equity research → go straight for NISM Research Analyst since it's likely a registration requirement for your role.

Frequently Asked Questions:

Q1. Is the NISM Research Analyst exam hard for beginners?
Ans: It's manageable with structured prep. Most difficulty comes from valuation formulas (DCF, WACC, CAPM) — practicing these with a formula sheet and mock tests resolves most of the gap.

Q2. How many formulas are asked in the NISM Research Analyst exam?
Ans: There's no fixed count, but the 50 formulas in this guide cover the categories the exam consistently draws from: profitability, valuation, liquidity, returns, cash flow, and risk.

Q3. What is the passing score for NISM Research Analyst?
Ans: 60 marks out of 100 (60%), with negative marking of 25% per wrong answer, per the official NISM Series XV exam notification. Always confirm the current figure on nism.ac.in, as cutoffs can be revised.

Q4. What does negative marking mean in this exam?
Ans: Negative marking means marks are deducted for wrong answers — here, 25% of that question's marks per incorrect response. It's why guessing randomly on the NISM Research Analyst paper can cost you more than leaving a question unanswered.

Q5. Is NISM Research Analyst certification valid for life?
Ans: No — like most NISM certifications, it typically has a fixed validity period and needs renewal through a Continuing Professional Education (CPE) program.

Summary: Key Takeaways

The NISM Research Analyst exam is a SEBI-mandated certification for anyone publishing investment research in India.
It's aimed at research analysts, investment advisors, and finance professionals — not every finance role needs it.
Start preparing 6–8 weeks out, moving from workbook reading to formula mastery to mock tests.
The 50 formulas above span profitability, valuation, liquidity, returns, cash flow, and risk models.
Valuation models (DCF, WACC, CAPM) are the highest-difficulty, highest-weight area for most beginners.
Practicing with a mock test and sample questions matters as much as memorizing formulas.
Choose NISM Research Analyst over NCFM if your role requires SEBI registration, not just skill validation.

Ready to test your recall? Take a full-length NISM Research Analyst mock test, work through more sample questions by chapter, or bookmark these quick-reference study notes for last-minute revision.

Official Sources

NISM Series XV: Research Analyst Certification Examination — official syllabus, fees, and exam pattern
SEBI (Securities and Exchange Board of India) — regulator and source of the Research Analyst Regulations, 2014

This guide is independently written and periodically reviewed for accuracy against the sources above. It does not replace the official NISM workbook, which is the authoritative study material for the exam.