CdSMANAGEMENT FOR BUSINESS AND ECONOMICS
Codice541PP
CFU9
PeriodoSecondo semestre
LinguaInglese
This is a course on fundamental analysis. The course combines accounting principles and investment principles to answer the question: How do I account for value so that I can challenge stock prices with some confidence? The primary emphasis is on equity (share) valuation, with a focus on developing and applying methods for valuing firms using financial statement analysis. Topics include models of shareholder value, a comparison of accrual accounting and discounted cash flow approaches to valuation, the analysis of profitability, growth and value generation in a firm, diagnosing accounting quality, and the determination of price/earnings (P/E) and market-to-book (P/B) ratios.
This is a course on fundamental analysis. The course combines accounting principles and investment principles to answer the question: How do I account for value so that I can challenge stock prices with some confidence? The primary emphasis is on equity (share) valuation, with a focus on developing and applying methods for valuing firms using financial statement analysis. Topics include models of shareholder value, a comparison of accrual accounting and discounted cash flow approaches to valuation, the analysis of profitability, growth and value generation in a firm, diagnosing accounting quality, and the determination of price/earnings (P/E) and market-to-book (P/B) ratios.
During the course, the student is engaged at understanding and developing a thorough, credible equity research report or investment analysis that meets the standards of professionalism.
During the course, the student is engaged at understanding and developing a thorough, credible equity research report or investment analysis that meets the standards of professionalism.
By the end of the course students should have answers to the following questions:
- How are fundamental values (or “intrinsic values”) estimated?
- What business activities determine value? How is “value created for shareholders” identified?
- What is the relevance of cash-flows? Of dividends? Of earnings? Of book values?
- How does ratio analysis help in valuation? How does profitability tie into valuation?
- How does one analyze the quality of financial reports?
- What determines a firm's P/E ratio? How does one calculate what the P/E should be? What determines a firm's market-to-book (P/B) ratio? How does one calculate what the P/B should be?
- How does one evaluate a financial research report?
By the end of the course students should have answers to the following questions:
- How are fundamental values (or “intrinsic values”) estimated?
- What business activities determine value? How is “value created for shareholders” identified?
- What is the relevance of cash-flows? Of dividends? Of earnings? Of book values?
- How does ratio analysis help in valuation? How does profitability tie into valuation?
- What is growth? How does one analyze growth? How does one value a growth firm?
- How does one analyze the quality of financial reports?
- What determines a firm's P/E ratio? How does one calculate what the P/E should be? What determines a firm's market-to-book (P/B) ratio? How does one calculate what the P/B should be?
- How does one evaluate a financial research report?
Case studies and financial reports will be discussed during the lectures.
Case studies and financial reports will be discussed during the lectures.
Students will acquire an awareness of techniques to be used in an accounting and financial research department or firm. Accordingly, students will acquire confidence typical to the financial analysis.
Students will acquire an awareness of techniques to be used in an accounting and financial research department or firm. Accordingly, students will acquire confidence typical to the financial analysis.
The course has a practical focus.
The methods of fundamental analysis will be examined in detail and applied in cases and projects involving listed companies.
The course has a practical focus.
The methods of fundamental analysis will be examined in detail and applied in cases and projects involving listed companies.
Introduction to Investing and Valuation
Introduction to the Financial Statements
How Financial Statements are Used in Valuation
Cash Accounting, Accrual Accounting and Discounted Cash Flow Valuation
Accrual Accounting and Valuation: Pricing Book Values
Accrual Accounting and Valuation: Pricing Earnings
Viewing the Business through the financial Statements
Analysis of the Statement of Shareholders’ Equity
Analysis of the Balance Sheet and Income Statement
The Analysis of the Cash Flow Statement
Analysis of Profitability
Analysis of the Quality of Financial Statements Analysis of Credit Risk and Return
Introduction to Investing and Valuation
Introduction to the Financial Statements
How Financial Statements are Used in Valuation
Cash Accounting, Accrual Accounting and Discounted Cash Flow Valuation
Accrual Accounting and Valuation: Pricing Book Values
Accrual Accounting and Valuation: Pricing Earnings
Valuation and Active Investing
Viewing the Business through the financial Statements
Analysis of the Statement of Shareholders’ Equity
Analysis of the Balance Sheet and Income Statement
The Analysis of the Cash Flow Statement
Analysis of Profitability
Creating Accounting Value and Economic Value
Analysis of the Quality of Financial Statements
Analysis of Credit Risk and Return
Materials uploaded on the Moodle (E-learning website of the course).
Allegrini - Ferramosca, FINANCIAL REPORTING AND ANALYSIS, CREATE McGraw-Hill 2020, ISBN 9781307529432.
Introduction to Investing and Valuation (chap. 1)
Introduction to the Financial Statements (chap. 2)
How Financial Statements are Used in Valuation (chap. 3)
Cash Accounting, Accrual Accounting and Discounted Cash Flow Valuation (chap. 4)
Accrual Accounting and Valuation: Pricing Book Values (chap. 5)
Accrual Accounting and Valuation: Pricing Earnings (chap. 6)
Viewing the Business through the financial Statements (chap. 8)
Analysis of the Statement of Shareholders’ Equity (chap. 9)
Analysis of the Balance Sheet and Income Statement (chap. 10)
The Analysis of the Cash Flow Statement (chap. 11)
Analysis of Profitability (chap. 12)
Analysis of the Quality of Financial Statements (chap. 18)
Analysis of Credit Risk and Return (last chap.)
Materials uploaded on the Moodle (E-learning website of the course).
Allegrini - Ferramosca, FINANCIAL REPORTING AND ANALYSIS, CREATE McGraw-Hill 2020, ISBN 9781307529432.
Introduction to Investing and Valuation (chap. 1)
Introduction to the Financial Statements (chap. 2)
How Financial Statements are Used in Valuation (chap. 3)
Cash Accounting, Accrual Accounting and Discounted Cash Flow Valuation (chap. 4)
Accrual Accounting and Valuation: Pricing Book Values (chap. 5)
Accrual Accounting and Valuation: Pricing Earnings (chap. 6)
Valuation and Active Investing (chap. 7)
Viewing the Business through the financial Statements (chap. 8)
Analysis of the Statement of Shareholders’ Equity (chap. 9)
Analysis of the Balance Sheet and Income Statement (chap. 10)
The Analysis of the Cash Flow Statement (chap. 11)
Analysis of Profitability (chap. 12)
Creating Accounting Value and Economic Value (chap. 17)
Analysis of the Quality of Financial Statements (chap. 18)
Analysis of Credit Risk and Return (last chap.)
Exams methods, materials and syllabus are the same for attending and non-attending students.
Exams methods, materials and syllabus are the same for attending and non-attending students.
Test on the web platform (test.ec.unipi.it)
Written exam with open questions as well as exercises and case studies
Test on the web platform (test.ec.unipi.it)
Written exam with open questions as well as exercises and case studies