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2024/2025  KAN-CACAO2403U  Financial Statement Analysis & Valuation

English Title
Financial Statement Analysis & Valuation

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for cand.merc. and CACA (CACA)
Course coordinator
  • Ole Vagn Sørensen - Department of Accounting (AA)
Main academic disciplines
  • Accounting
  • Economics
Teaching methods
  • Blended learning
Last updated on 20-06-2024

Relevant links
Learning objectives
At the exam the students must be able to:
  • Describe how elements in the annual report are recognised, measured and classified.
  • Prepare analytical income statements and balance sheets
  • Analyse a firm's profitability and growth
  • Calculate and intepret financial ratios that describe a firm's economic well-being
  • Assess accounting quality in a firm's financial data
  • Make proper adjustments to the financial statements to ensure accounting data have the necessary quality
  • Value firms (shares) based on a variety of valuation models
  • Demonstrate the ability to assess strengths and weaknesses of various valuation models
Course prerequisites
Students are expected to possess knowledge about accounting including book keeping at least at the bachelor level.
Admission req.
Bachelor level
Examination
Financial Statement Analysis & Valuation:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
Aids Limited aids, see the list below:
The student is allowed to bring
  • USB key for uploading of notes, books and compendiums in a non-executable format (no applications, application fragments, IT tools etc.)
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Access to the personal drive (S-drive) on CBS´ network
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

Aim of the Course:

The purpose of 'Financial Statement Analysis and Valuation' is to provide the students with rigorous tools that are needed to carry out a
financial statement analysis in relation to at valuation.

Contents:
Accounting information is used by business analyst as input into the valuation process. The required accounting information depends on
the valuation model applied (e.g. the discounted cash flow model). For instance analyst within corporate finance use financial statement analysis
to determine the historical level of profitability in order to forecast future earnings.

The course contains the following core elements:
Introduction to the elements of the annual report.
Method for measuring profitability and growth.
Assessment of accounting quality (earnings quality).
Forecasting
Firm valution

Learning process
Research and theory based lectures are mixed with exercises and cases. Lectures provide the students with the necessary tools to make financial analyses and valuation.
Through cases the students learn how to apply theory and use a variety of valution models in practice.
Description of the teaching methods
The teaching will be a combination of:
Dialog lectures
Discussion of solutions to cases/exercises

Students are responsible for their own learning. They are encouraged to engage in study groups.
Feedback during the teaching period
Exercise classes entail feedback to students who have prepared solutions at home. Students will see the instructor's solution and are encouraged to speak up
in case of deviations between the instructor solutions and their own solutions.
In-class quizzes may be offered in order to give students a quick indication of their understanding of each topic.
Student workload
Preparation and participation in dialog lectures 100 hours
Preparation and participation in exercises and cases 80 hours
Preparation for exam 30 hours
Exam 4 hours
Expected literature

Thomas Plenborg & Finn Kinserdal: “Financial Statement Analysis: Valuation , Credit analysis and Performance evaluation" "2nd Edition. Fagbooklaget (2020)
Last updated on 20-06-2024