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AF215: Business Analysis and Valuation


Session: One

Prerequisites: Introductory accounting and introductory finance

Dr Pascal Frantz
Professor Joanne Horton

This course introduces the valuation techniques used by analysts - in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. It shows how to use financial statements, and more generally business analysis, in order to generate expectations of future performance. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.

More specifically, this course introduces a framework for business analysis and valuation using publicly available information, such as the information contained in financial statements, in order to develop an in-depth analysis of a firm and extract its fundamental value. Much of the course's emphasis is on case studies.

The framework covers key analysis components such as:

  • Business strategy analysis;
  • Accounting analysis;
  • Financial analysis;
  • Prospective analysis.

The framework is then applied to a variety of contexts including:

  • Valuation;
  • Evaluation of mergers and acquisitions.

Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study.

This course should hence appeal to students interested in corporate finance, equity research, fund management, and strategy consulting.

K. Palepu, P. Healy and E. Peek, Business Analysis and Valuation: Text and CasesIFRS Edition, CENGAGE (2013).

Lectures: 36 hours    Classes: 12 hours
Assessment: Two written examinations