26 July 2024
Evaluation of Financial Information
This course covers the use of financial information to value firms, projects, and securities in a variety of industries under different economic conditions. The course
will be largely based on case studies and will focus on learning techniques of financial analysis, selecting an appropriate valuation model, analyzing the quality of financial data, and forecasting financial variables and cash flows. The course assumes that you have a good working knowledge of introductory accounting, finance, and economics.
Read two papers: (1) Introduction to Financial Ratios and Financial Statement Analysis and (2) Assessing a Company’s Future Financial Health;
Class 1: Review of financial statements and financial ratios: balance sheet, income statement, statement of cash flows, key ratios; Case: Santa Fe Trading Company;
Class 2: Valuation framework and the cost of capital calculations; Case Eaton Corp.
Class 3: Pro-forma financial statements and evaluation of investment projects; Case: Hansson Private Label Inc.: Evaluating an Investment in Expansion
Class 4: Evaluating financial information in the M&A scenario; Case: Sun Micro.
Class 5: Analysis of financial statements in banking; Case: Citigroup 2007: Financial Reporting and Regulatory Capital
Class 6: in-class company valuation (AT&T and Time Warner merger);
Feedback activity: Students will be asked to analyze financial information and estimate the value of a company (financial statements will be provided). The final exam will also be a case study.
Class 7: Accounting ratios and relative valuation process; Case: SUN Brewing
Class 8: Real estate industry (REITS) analysis; Case: Simon’s Hostile Tender for Taubman
Class 9: Health care industry: leveraged buyout analysis; Case: HCA, Inc.
Class 10: How activist investors use accounting data to identify their targets; Case: Kerr-McGee
Class 11: Course review
Carsten Sørensen - Department of Finance
This is a graduate level course. CBS Summer University courses at Copenhagen Business School is open to all and welcomes domestic and international students as well as professionals.
Compute key financial ratios using financial statements of publicly traded companies
Determine financial health of the companies by interpreting key financial ratios
Convert data from accounting statements into free cash flows for valuation purposes
Apply DCF (discounted cash flow) model for in valuation of projects and companies in various industries and economic conditions
Apply relative valuation models using market and transaction multiples
This is a 6-week course. You can combine up to two 6-week courses making 15 ECTS in total.
Find more information on our website.
DKK 6000: Tuition fee for Open University students (EU/EEA/Swiss citizenship)
DKK 15000: Tuition fee for non-European students.