Financial Statement Analysis and Business Valuation 2400-ZEWW558

Part A: Overview of Financial Statements

Session 1 - Introduction to Investing and Valuation: Investment Styles and Fundamental Analysis, The Role of Financial Reporting in Capital Markets, Stock Market Bubbles, The Professional Analyst and the Investor, Business Analysis, Valuation Technology

Session 2 - Introduction to the Financial Statements: The Financial Statements: Income Statement, Balance Sheet, Statement of Cash Flows, etc., Measurement in the Financial Statements, Comparisons using Financial Statements.

Session 3 - How Financial Statements are Used in Valuation: Multiple Analysis, Asset Based Valuation, Fundamental Analysis, The Architecture of Fundamental Analysis, Dividend Discount Model

Session 4 - Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation: The Discounted Cash Flow Model, The Statement of Cash Flows, Earnings, and Accrual Accounting,

Session 5&6 - Accrual Accounting and Valuation: Pricing Book Values: The Concept Behind the Price to Book Ratio Prototype Valuations, A Model for Anchoring Value on Book Value

Part B: The Analysis of Financial Statements

Session 7 - Business Activities and Financial Statements: Business Activities and Reformulating Statements Accruals

Session 8 - Analysing the Statement of Shareholders’ Equity: Reformulating the Statement of Owners’ Equity, Clean Surplus and Dirty Surplus

Session 9 - Analysing the Balance Sheet and the Income Statement: Reformulation of the Balance Sheet, Reformulation of the Income Statement, Comparative Analysis

Session 10 - Analysing the Cash Flow Statement Free Cash Flow: Reformulating Cash Flow Statements Read

Session 11 - Analysing Profitability: Effect of Leverage Drivers of Profitability

Session 12 - Analysing Growth and Sustainable Earnings: What is Growth? Analysing Changes in Profitability and Sustainable Earnings Analysing Growth in Investment Read

Part C: Forecasting And Valuation Analysis

Session 13 - Valuation of Operations and Analysis of Price to Book Ratios: Forecasting and Valuation with Balance Sheets Modifying Residual Earnings The Cost of Capital in Valuation

Session 14 - Simple Forecasting and Simple Valuation: Simple Forecasts and Simple Valuation Simple Forecasts of Growth Return on Net Operating Assets, The Applicability of Simple Valuations Simple Valuation as an Analysis Tool

Session 15 – Full Information Forecasting, Valuation and Business Strategy Analysis: Knowing the Business, Financial Statement Analysis: Focusing the Lens on the Business, Full Pro Forma Analysis, Value Generated in Share Transactions.

Part D: Accounting Analysis And Valuation

Session 16 - Creating Accounting Value and Economic Value: Value Creation and the Creation of Residual Earnings Accounting Methods,PBRatios, PERatios, and Valuation Hidden Reserves Conservative and Liberal Accounting

Session 17 - Analysing the Quality of Accounting: Accounting Quality, Earnings Quality, Detecting Accounting Manipulation and Transaction Manipulation, Disclosure Quality

Part E: Analysing Risk

Session 18 - Analysing Equity Risk and the Cost of Capital, Understanding Risk Betas, Price Risk

Session 19 - Analysing CreditRisk: Ratio Analysis for Credit Evaluations Forecasting and Credit Analysis Liquidity Planning and Financial Strategy

Session 20 - Project Presentation