Financial Statement Analysis & Valuation (323059)

Master of Accountancy, Master of Finance, Block 3


September 10, 2023

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Cheat Sheet Figures Repo

Course Description

This course is designed to help students develop and apply skills in interpreting and analyzing financial statements, along with other sources of information, prospectively in order to forecast and value a firm by applying accounting-based valuation methods. This course equips students with the analytical framework and practical tools needed in analyzing firms’ financial performance. Using financial statements as the primary source of information, the course complements well with the course Financial Accounting and Reporting (324059-M-6) and provides a further foundation for more advanced courses like Advanced Financial Accounting (324028-M-6). The course combines lectures, practice sessions (using real-world examples), and hands-on group assignments. This course is ideal for students who wish to pursue careers in accounting, investment banking, corporate finance, and consulting.

Learning Goals

Upon successful completion of this course, you will be able to:

  1. Decompose firm value into value drivers and evaluate a firm’s performance based on its value drivers.
  2. Evaluate a firm’s business model as to where its competitive (dis)advantages are.
  3. Analyze and evaluate a company’s current performance using financial statement information. (This includes detecting and adjusting for managerial or other distortions of financial information.)
  4. Analyze which information one needs to collect to evaluate a company’s future performance and how to critically analyze this information.
  5. Build and defend forecasts of a company’s future performance using state-of-the-art analytical frameworks.
  6. Conduct and defend a full company valuation employing commonly used security valuation methods.