This course is designed to prepare students to interpret and analyze financial statements prospectively to forecast and value firms using various state-of-the-art valuation methods. The course offers the analytical framework and practical tools that are needed for such analysis. This course will also help you understand and analyze how managerial accounting choices affect reported numbers, increasing your ability to detect and undo their effects. This course is ideal for students who wish to pursue careers in investment banking, corporate finance, consulting, as well as public accounting.
During the first part of the course a framework for business analysis and valuation will be presented. Next, the four phases of this framework (strategic analysis, accounting analysis, financial analysis, and prospective analysis) will be discussed in detail. In the final part, attention will be paid to several applications of business analysis and valuation. The discussion of all these topics is based on cases. In addition, students have to complete a team assignment that consists of the analysis and valuation of an existing company.
Type of instructions
Each week two lectures of two hours
Type of exams
Group assignment (30%) and written exam (70%)
- Penman, Steven, Financial Statement Analysis and Security Valuation, McGrawhill, 5th.