This subject examines the use of financial statements for the analysis and valuation of companies. The framework employed incorporates four key components: (1) an analysis of the company’s operating environment and the strategies it employs; (2) an assessment of the quality of the company’s financial reports, including making any necessary adjustments; (3) forecasting future performance and cash flows; and (4) estimating a value for the company. Several valuation approaches are covered including the use of valuation multiples. And present value-based techniques.
Intended learning outcomes
On completion of this subject, students should be able to:
Understand and be able to apply the primary approaches available to value firms.
Have an improved ability to link valuation to the strategic, accounting and financial analyses of firms.
Be able to apply these analysis tools in a variety of decision settings.