Programmes

Business Analysis and Valuation

  • Summer schools
  • Department of Accounting
  • Application code SS-AC215
  • Starting 2020
  • Short course: Open
  • Location: Houghton Street, London

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.

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


Session: Two
Dates: 13 July – 31 July 2020
Lecturers: Dr Xi Li and Dr Ken Lee


 

Programme details

Key facts

Level: 200 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: Two written examinations

Typical credit**: 3-4 credits (US) 7.5 ECTS points (EU)


*Assessment is optional

**You will need to check with your home institution

For more information on exams and credit, read Teaching and assessment

Prerequisites

Introductory accounting and introductory finance

Programme structure

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:

  • Calculation of equity and enterprise value
  • Accounting based valuation methodologies such as residual income
  • Discounted cashflow valuation including practical problems and solutions
  • Effective use of multiples for relative valuation
  • Sum of the parts valuation
  • Specialist valuation challenges including valuing high growth companies and mergers and acquisitions 

Each of the topics in this course covers both institutional details and results of relevant academic research, which are supported by case studies.

Course outcomes

This course aims to introduce students to business analysis and valuation.

By the end of the course, students should be able to apply an economic framework enabling them to analyse a firm’s expected performance. In addition students will become familiar with the practical and theoretical application of core valuation methodologies (multiples, discounted cashflows and accounting based). 

Teaching

The Department of Accounting continues to enjoy a reputation as one of the leading groups in the world for teaching and research on the economic, institutional and organisational aspects of accounting and financial management. The department strives to combine 'global appeal' with a distinctive 'European orientation' in terms of institutional knowledge and affiliations, as well as intellectual traditions.

The Department, along with the Departments of Finance and Management, was ranked as the UK leader for Business and Management Studies in the most recent National Research Assessment Exercise.

On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s accounting faculty.

Reading materials

Business analysis (Part 1): K. Palepu, P. Healy, V. Bernard and E. Peek, Business Analysis and Valuation: Using Financial Statements, CENGAGE (Fourth IFRS edition, 2016).

Valuation (Part 2): Antill, N, Lee, K. and Taylor, D., Company valuation under IFRS, Harriman House (3rd Edition, 2020). 

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice

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Related Programmes

Performance Measurement for Decision-Making

Code(s) SS-AC201

Financial Statement Analysis for Investment Banking and Asset Management

Code(s) SS-AC210

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