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CM R81 - Financial Statement Analysis and Valuation*"CLOSED FOR FURTHER ENROLMENT"

Faculty
Cand polit Christian Rode
Course Coordinator
Associate Prof. Ole Sørensen
Prerequisite/progression of the course
It is required that the students have had an introductory course in financial accounting and a reasonable exposure to finance.
Course content, structure and teaching
This course is about the analysis of financial information – particular firm’s financial statements – for making decisions to invest in businesses.
The course has a very practical focus. The methods of fundamental analysis will be examined in detail and applied in cases involving listed companies. Topics include a comparison of different valuation techniques, the analysis of profitability and growth, forecasting earnings and cash flows for valuation.
The course is of interest to those contemplating careers in investment banking (particular equity research), security analysis and corporate finance.
By the end of the course students should have answers to the following questions:
  • How are fundamental values estimated?
  • What business activities determine value?
  • How does one pull apart the financial statements to get the relevant information for valuing equities?
  • How does ratio analysis help in valuation?
  • How does profitability tie into valuation?
  • What is growth? How does one analyse growth? How does one value a growth firm?
The course will be structured around different topics in relation to financial statement analysis and valuation. The teaching lessons will be a combination of dialog-based lecturing and going through exercises and cases.
Learning Objectives
In order to achieve the grade 12 it is required that the students can:
  • Reformulate reported financial statements for analytical purposes
  • Conduct an analysis of profitability and growth
  • Prepare pro forma financial statements
  • Convert pro forma financial statements to a valuation
Type of examination, exam aids and assessment
4-hour individual written exam (open book)
Recommended literature
  • Financial Statement Analysis and Security Valuation’ 4th ED. (2010) McGraw-Hill ISBN 978-007-126780-9
Other: Selected readings
  • ‘Financial Statement Analysis – A Valuation Approach’ Prentice Hall ISBN-0-13-032834-0 (2003)
  • ‘Valuation’ 4th ED. (2005) Wiley.
  • ‘Equity Valuation and Analysis. 2nd ED (2007) McGraw-Hill
  • Regnskabsanalyse og værdiansættelse – en praktisk tilgang, 3. Udgave (2009). Gjellerup.

Last updated by The Electives Office 18/08/2010