Outlines

 

Unit 1

A Framework for Business Analysis and Valuation using Financial Statement

Information - Fundamental Analysis

• The framework and hierarchy of financial analysis; operating , financial , and investment analysis
• Economic consequences of accounting numbers, thorough analysis of the information content of the Income statement, balance sheet, Cash flow statement.
• Introduction to the use of accounting numbers in valuation and credit decisions, the effect of operating cash flow and earnings per share on company value
• Evidence on the impact of earnings on stock prices, EPS with Stock prices
• The relation between accounting and strategy, the impact of the marketing strategy on profit margin and sales growth for example
• Introduction to financial analysis tools, the ratio analysis using financial statements -and using external non financial statement analysis as economic growth rates
• Application and interpretation of financial analysis tools, horizontal analysis versus vertical analysis

Unit 2

Ratios Analysis, Cash Flows Analysis, Accounting Adjustments, and Forecasting Financial Statements

• Financial statement ratios; liquidity, Solvency, activity, Debt, profitability, market ratios
• The statement of cash flows and cash flow analysis tools; the concept of cash flow adequacy ratios
• Using key financial ratios as ROI, ROCE, EBIT MARGINS,EBITDA
• Developing forecasts and building financial statement forecasts
• Case study

Unit 3

A Framework for Business Analysis and Valuation using Financial Statement

• Communicating with the capital markets
• Introduction to the concept of required return and cost of capital
• What earnings numbers are the right ones, are we talking about the accounting profits or the economic profits
• The EVA indicator in measuring corporate efficiency in maximizing shareholders wealth.
• The use of accounting numbers in valuation – free cash flows valuation, residual income valuation, and accounting-based valuation multiples
• Business analysis and valuation: implementing the tools
• Case study

Who Should Attend

Participants entering this program should have a basic understanding of financial statements, and some background and relevant professional experience in finance, economics, business administration, or consulting.

The typical participant will be a commercial banker, investment banker, securities analyst, portfolio manager, corporate financial manager or project analyst, consultant, or other finance-oriented professional seeking to expand their understanding of financial statements and analysis skills in order to be capable of undertaking professional responsibilities that require a greater ability to analyze such statements with greater confidence and at greater levels of sophistication.

Duration

5 Days