MN52093: Financial statement analysis and equity valuation
[Page last updated: 23 October 2023]
| Academic Year: | 2023/24 |
| Owning Department/School: | School of Management |
| Credits: | 5 [equivalent to 10 CATS credits] |
| Notional Study Hours: | 100 |
| Level: | Masters UG & PG (FHEQ level 7) |
| Period: |
- Semester 2
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| Assessment Summary: | CWRI 100% |
| Assessment Detail: |
- Application of the four steps of financial statement analysis to a listed company (CWRI 100%)
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| Supplementary Assessment: |
- Like-for-like reassessment (where allowed by programme regulations)
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| Requisites: |
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| Learning Outcomes: |
By the end of the unit, you will be able to:
- Critically assess the quality of accounting information and understand how the business strategy affects accounting information
- Interpret the information in the financial statements for the purpose of assessing the overall profitability, the creditworthiness of the business and the effectiveness of management
- Use multiple methods/models, based on accounting information, to value a company
- Apply financial statement analysis to a limited company and draw conclusions which could be communicated to investors
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| Synopsis: | Develop a broad understanding of both the theory and the practice of financial statement analysis. You will learn about valuation techniques and how to use them in equity valuation.
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| Content: | Key elements to be included:
- The role of financial statement analysis in capital markets
- Business strategy analysis: analysis of the competitive environment of the firm
- Accounting analysis: analysis of financial reporting quality
- Financial analysis: (i) cash flow analysis; (ii) ratio analysis
- Prospective analysis: (i) forecasting; (ii) valuation (alternative methods/models to value equity)
- Credit analysis: analysis of the business from the point of view of creditors
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| Course availability: |
MN52093 is Compulsory on the following courses:
School of Management
MN52093 is Optional on the following courses:
School of Management
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Notes: - This unit catalogue is applicable for the 2023/24 academic year only. Students continuing their studies into 2024/25 and beyond should not assume that this unit will be available in future years in the format displayed here for 2023/24.
- Courses and units are subject to change in accordance with normal University procedures.
- Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
- Find out more about these and other important University terms and conditions here.
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