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Students often ask me: Ma'am, if I memorise all the formulas - ROE, ROCE, Dividend Yield, EPS, am I set to crack the NISM XV exam?
Honestly? Not entirely.
I've been teaching Accounting and Finance for over 18 years, and I'll tell you what I tell every batch: your concepts must be crystal clear first. If you can read a Vertical Balance Sheet or a Vertical Profit & Loss Account fluently, most ratios will naturally make sense to you. You won't need to memorise them — they'll just surface from your understanding.
That said, I hear you. You want a formula-based reference. The demand is real, especially for the NISM Series XV Research Analyst certification exam, where numerical questions appear regularly. So this article gives you both the formulas and the conceptual logic behind each one.
My Take: Think of formulas as shortcuts to answers you already understand. If you don't understand the concept, a formula is just a string of letters. Read your financial statements well, and the numbers will start speaking to you.
NISM XV 2026 Exam Structure at a Glance.
Before diving into formulas, you need to understand where these numerical questions appear in the exam. Here's the updated NISM Series XV exam structure as of the January 2026 reformed pattern:
My Take: With 25% negative marking, it's better to leave a question than guess blindly — especially in the numerical section. A confident, concept-backed approach beats reckless formula application every time.
Old Pattern vs New Pattern: What Changed in January 2026. This is where PSKA has a clear edge over every competitor — most other prep sites are still teaching the old NISM XV syllabus. Here's what actually changed:
Eligibility: Old Rules vs New SEBI 2025 Amendment. Many students don't know that SEBI amended the eligibility criteria in 2025, opening up the NISM Series XV Research Analyst certification to a much wider audience.
All Numerical Formulas with Solved Examples.
Now let's get to what you came for. Below are all key formulas tested in the NISM XV exam, with the formula, a solved example, and the answer logic explained.
My Take: Market Cap is the most foundational concept in equity research. Every valuation ratio you'll study — P/E, P/BV, P/S — uses Market Cap in some form. Don't just memorise the formula; understand why Market Cap matters to an analyst.
My Take: EV is a more complete measure of a company's value than Market Cap because it accounts for debt and cash. As a Research Analyst, you'll use EV when comparing companies with different capital structures — very important for the case-study section.
Answer: B) 20%7. Price-to-Book Value (P/BV) RatioFormulas:
P/BV = CMP / Book Value Per SharePractice more case studies with PSKA's updated question bank → Explore the Full Course
Syllabus Weightage Table (2026 Pattern).
The NISM XV 2026 syllabus has 15 chapters. Here's the approximate topic-wise weightage to help you prioritise your preparation:
How to Approach Numerical Questions in NISM XV Case Studies.
The new NISM XV 2026 pattern introduces 3 case studies worth 12 marks. These aren't standalone formula questions — they give you a company scenario and ask 4 connected questions around it. Numerical ratios like EPS, ROCE, and P/BV often appear within these cases. Here's how to approach them:
{{AUTHOR}}
SEBI® Research Analyst. Registration No. INH000013800 M.Com, M.Phil, B.Ed, PGDFM, Teaching Diploma (in Accounting & Finance) from Cambridge International Examination, UK. Various NISM Certification Holders. Ex-BSE Institute Faculty. 18 years of extensive experience in Accounting & Finance. Faculty Development Programs and Management Development Programs at the PAN India level to create awareness about the emerging trends in the Indian Capital Market, and counsel hundreds of students in career choices in the finance area
Yes. Ratio analysis and numerical formula-based questions are a consistent part of the NISM XV paper. Questions on EPS, ROCE, P/BV, Market Cap, and Enterprise Value appear every exam cycle either as standalone MCQs or embedded within case study scenarios.
While NISM does not publish an exact breakout, numerical questions (including ratio-based and valuation-based) typically account for 10–15% of the total paper. In the new 2026 pattern, at least 1–2 of the 3 case studies will likely involve numerical interpretation.
EPS (Earnings Per Share) measures profitability per share using net profit, while DPS (Dividend Per Share) measures actual cash distributed per share from the dividend payout. EPS ≥ DPS always a company can't distribute more than it earns per share sustainably.
Market Cap only values the equity portion of a company (price × shares). Enterprise Value is broader it adds debt and preferred capital, and subtracts cash, giving a truer picture of what it would cost to acquire the entire business. NISM XV tests both in the valuation section.
ROCE = EBIT ÷ Total Capital Employed × 100. It tells a Research Analyst how efficiently a company uses all its capital (both equity and debt) to generate operating profit. A higher ROCE compared to the industry average is a positive signal in equity research reports.
Yes, a P/BV below 1 means the market is valuing the company below its book (accounting) value often indicating distress, undervaluation, or investor skepticism about asset quality. For Research Analysts, this is a key flag during fundamental analysis.
P/S (Price-to-Sales) uses revenue in the denominator, while P/E (Price-to-Earnings) uses net profit. P/S is more useful for companies that are not yet profitable (startups, growth companies) since they have no earnings but still generate sales.
Book Value = Equity Capital + Reserves + Undistributed Profit. Then divide by total outstanding shares. Many students miss adding undistributed profit this is a common exam trap in NISM XV numerical questions.
The core formulas remain the same, but NISM XV-B may include updated regulatory context or revised case study formats based on SEBI circulars issued after your original certification. Always prepare with the most current workbook edition.
You may pass basic MCQs, but the 3 case studies in the 2026 pattern require contextual application not just formula recall. For example, a case study might give you a full company scenario and ask you to interpret the ROCE, not just calculate it. Concept clarity is non-negotiable for a strong score.
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