Programmes

Business Analysis and Valuation

  • Summer schools
  • Department of Accounting
  • Application code SS-AC215
  • Starting 2021
  • Short course: Closed
  • Location: Houghton Street, London

Accurate business analysis and valuation is essential in determining the long-term health and future value of a firm. This information is critical for investors, senior managers, fund managers and private investors who need to make strategic decisions based on quantitative data and sound valuation methods.

Using publicly available information and real-world case studies including Marks & Spencer, Carrefour and Coca-Cola, this course introduces a framework for business analysis and valuation grounded in cutting-edge academic research. Taking you through key analysis components such as business strategy analysis, accounting analysis, financial analysis and prospective analysis in a variety of decision contexts, the course then proceeds to focus on equity valuation. The objective of this second half of the course is to provide students with a detailed, applied knowledge of contemporary valuation methodologies. This will include technical sessions, exploration of the practices in the field and numerous cases and technical exercises.

Whether you are interested in pursuing a career in corporate finance, fund management or equity research, you will be able to apply the theory using real-world business cases. By the end of the course, you will have developed the ability to conduct an in-depth analysis of a firm to extract its expected performance and value the firm’s shares.


Session: Two
Dates: 12 – 30 July 2021 


 

Programme details

Programme structure and assessment

This course is delivered as a combination of lectures, case-studies, class discussions and readings. A key feature of the course is the rigorous practical application of academic research and theories to real-world business cases.

The course is assessed through two examinations: one mid-session examination (50%) and one final examination (50%). Take-home exercises will be provided in class to provide feedback and test understanding. These exercises will not contribute to the final grade but will help prepare students for the summative examinations.

*Further details will be provided at the beginning of the course.

Course outcomes

  • Understand financial statements to be able to forecast the future performance of a firm
  • Analyse a firm’s business strategy and financial performance using real-world data
  • Calculate the value of a firm using both equity and enterprise value-based methodologies
  • Apply accounting-based valuation methodologies such as residual income
  • Discuss the use of discounted cashflow valuations including practical problems and solutions
  • Identify specialist valuation challenges including valuing high-growth companies, and mergers and acquisitions
  • Apply relative valuation techniques to value companies, to extract ‘priced in’ performance and to communicate valuation information

Key topics

  • Introduction to business analysis and valuation

  • Accounting analysis, adjustments and recasting

  • Business strategy and financial analysis

  • Prospective analysis and forecasting

  • Cashflow-based valuation

  • Accounting-based valuation

  • Price multiples-based valuation

  • Mergers and acquisitions

Is this course right for you?

This course will suit you if you want to hone your financial analysis skills and develop a robust knowledge of valuation methodologies. You should consider taking this course if you are interested in pursuing a career in corporate finance, equity research, fund management or strategy consulting. Indeed the content of the course should help students in the pursuit of careers in these fields.

The course should also prove useful to those students undertaking interviews and assessments for careers in the finance, accounting and consultancy sectors.

Your department

LSE’s Department of Accounting enjoys 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, along with the Departments of Finance and Management, was ranked as the UK leader for Business and Management Studies in the most recent Research Excellence Framework.

The Department offers an outstanding interdisciplinary research environment, retaining close ties with other departments and professional communities which ensures that our faculty work at the cutting edge of new developments in accounting practice. Students gain the knowledge, critical thinking and analytical skills to break down complex ideas and apply new concepts to real-world problems, preparing them with the necessary skills to thrive in various sectors, including corporate, government, non-profit and the public sector.

Prerequisites

Introductory accounting (to the level of AC110) and introductory finance are required.

Your faculty

Lecturers:

Dr Xi Li
Associate Professor of Accounting, Department of Accounting

Dr Ken Lee
Associate Professorial Lecturer, Department of Accounting

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 but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements.

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

Reading materials

Business analysis (Part 1): K. Palepu, P. Healy, V. Bernard and E. Peek, Business Analysis and Valuation: Using Financial Statements, CENGAGE (Fifth IFRS edition, 2019)

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

Sign up for updates

Sign up for updates

  • Please enter a valid email address. We will send you relevant material regarding the LSE Summer School programme.
  • Which course subject area(s) would you like to know more about?
  • Your privacy
    The details you give on this form will be stored on a secure database. LSE Summer School will use your data to send you relevant information about the School and to find out about your experiences of applying to LSE. The data on the form will also be used for monitoring purposes and to track future applications. LSE will not give or sell your details to any other third party organisation. Your data is subject to the LSE website terms and conditions and our Data Protection Policy. You can withdraw from our lists at any time by using the 'unsubscribe/manage email preferences' link that can be found in the footer of each email, or by contacting summer.school@lse.ac.uk.

How to Apply

Related Programmes

Performance Measurement for Decision-Making

Code(s) SS-AC201

Financial Statement Analysis for Investment Banking and Asset Management

Code(s) SS-AC210

Request a prospectus

  • Name
  • Address

Register your interest

  • Name

Speak to Admissions

Content to be supplied