The course begins with the basic concepts of financial statement analysis. We look at the analysis of the main financial statements: balance sheet, income statement, and cash flow statement. The course continues with the concepts of equity valuation. We look at discounted cash flow model and the multiplier model.
Robinson, T. R. (2020). International Financial Statement Analysis. 4th Edition, Wiley
Pinto, J. E. (2020). Equity Asset Valuation. 4th Edition, Wiley
Lecture slides and any other materials available on Moodle (e-l.unifi.it)
Obiettivi Formativi
The objective is to help students become advanced readers of the financial statements. The course focuses on the analysis of financial statements, especially through specific techniques that allow comparison over time and across firms. It also provides an understanding of what equity valuation is, what assumptions and concepts underpin valuation models, and how to properly justify these assumptions in real cases. A solid understanding of the fundamentals covered in this course enable students to master financial statements analysis and valuation techniques that are generally required on the job market.
Prerequisiti
The course is intended for students with previous exposure to intermediate financial accounting and basic corporate finance.
Metodi Didattici
The teaching methodology is specifically tailored to enable students’ active participation and engagement. The number of traditional lectures is limited to the exposition of theoretical constructs each topic, which will then be further investigated through alternative teaching methodology. These include tutorials, group projects, and seminars.
Altre Informazioni
See additional information (especially grading policy) at the official online
repository e-l.unifi.it
Modalità di verifica apprendimento
Final grades will be determined as follows:
• Group project 20%
• Midterm Exam 40%
• Final Exam 40%
• Total Grades 100%
Class Participation will be evaluated at discretion of the instructor with 2 additional points.
Programma del corso
The course is intended for students with previous exposure to intermediate financial accounting and basic corporate finance. The course begins with the basic concepts of financial statement analysis. We look at the analysis of the main financial statements: balance sheet, income statement, and cash flow statement. Particular attention is paid to how these statements relate to each other and how they can provide information about the financial health of a company. We then cover financial statements analysis through ratio analysis.
The course continues with the concepts of equity valuation. We look at the basic tools of equity valuation to understand the different valuation models. We then continue with industry and company analysis, time value of money, and return concepts. Finally, we introduce the discounted cash flow model and the multiplier model.