Unit information: Financial Statement Analysis and Valuation in 2020/21

Unit name	Financial Statement Analysis and Valuation
Unit code	ECONM2027
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Bence
Open unit status	Not open
Pre-requisites	None
Co-requisites	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit provides frameworks that will help students to interpret information provided in financial statements and understand how businesses and value they generate are reflected and captured in the statements. The unit will cover fundamental analysis developed as a matter of appropriate financial statement analysis. In particular, it will focus on how different accounting information can be converted into valuation, what different accounting measures tell about firm value and how a proper analysis should be developed. Theoretical concepts and principles will be applied in a number of practical exercises. The skills and tools learnt will be those that a security analyst outside the firm may use to advise clients about investing in a firm and also those that a manager within the firm may use to evaluate investments and choose the strategy.

Intended Learning Outcomes

On successful completion of the course, students will be able to:

1. Integrate current theoretical findings to develop a comprehensive overview of the framework of fundamental analysis of companies
2. Develop a working awareness of different valuation theories and critically assess their applicability, advantages and disadvantages in different contexts
3. Apply the process of fundamental analysis to value a company, identifying relevant information from a company’s financial statements to use in the process
4. Identify and select appropriate sources of financial data and manipulate the data into forms that can be used in the forecasting and valuation processes
5. Present the results of analytical techniques studied coherently and concisely in an industry accepted standard format

Teaching Information

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Information

This unit will be assessed by group coursework 25% and individual coursework 75%

Reading and References

• Palepu, K., P. Healy, V. Bernard and E. Peek (2017) Business Analysis and Valuation, Cengage Learning, 4^th Edition
• Penman, S. (2013) Financial Statement Analysis and Security Valuation,
• McGraw-Hill/Irwin, 5th Edition