-1?

“

The Aim of the Course
To develop and apply technologies for valuing firms and for strategic planning to generate value within the firm. • • Features of the approach: A disciplined approach to valuation: minimizes ad hockery
– Built on theoretical and empirical findings from scientific research
I

‘_

Marries fundamental analysis and financial statement analysis
– Exploits accounting as a system for measuring value added – Exposes good (and “bad”) accounting from a valuation perspective

L

Financial Statement Analysis and Security Valuation

• • •

Integrates financial statement analysis with corporate finance Focuses on technologies that can be used in practice
– Based on real world examples

Adopts activist point of view to investing
– The market may be inefficient
0-1

What Will You Learn from the Course
Part I Financial statements and valuation Ch. 1-7 • How intrinsic values are calculated • What determines a firm’s value • How businesses are analyzed to assess the value they create • How financial analysis is developed for strategy and planning • The role of financial statements in determining firms’ values • How to pull apart the financial statements to get at the relevant information • How ratio analysis is employed in valuation • How growth is analyzed and valued • How to calculate the P/E and P/B ratio and what they should be • The value of operations • How to make forecasts and develop valuations • How to assess the quality of the accounting
0-2

_c I-

By the end of the course, students should be able to develop earnings forecasts and then use the forecasts to value equity and form investment recommendations, much the same as what financial analysts do in the market.

Microsoft Corporation MSI-T lNa=d~1l |*** mlllum 310009 album “mum Median Wb A AM Sdtvme-Irfraslarrxrn

Strong Start to 20 11 for Microsoft