ACCT 70312 - Bus Anly & Val/Financial Stmts

Institution:

University of Notre Dame

Subject:

Accountancy

Description:

This course focuses on the use of accounting information for equity valuation and techniques of fundamental analysis. The course includes a detailed examination of alternative methods of equity valuation that are ultimately applied in projects involving publicly traded firms. Particular emphasis is placed on valuation using accounting-based valuation approaches as alternatives to multiples of sales, earnings, and cash flows or the discounted cash flow (DCF) models currently used by valuation professionals. Accounting-based valuation models considered include the Residual Operating Income (ReOI) Model, which has gained popularity in academic work and in practice, and the more recent Abnormal Operating Earnings Growth (AOEG) model, which provides a rigorous foundation for simplified approaches such as the Gordon Growth Model and earnings capitalization models that incorporate the present value of growth opportunities (PVGO). The course begins with a comparison of discounted cash flow and accounting-based approaches to fundamental valuation. Other topics include methods of financial statement analysis, pro-forma analysis and forecasting, determinants of firms' price-to-earnings and market-to-book ratios, and approaches to dealing with accounting issues. The objective of the course is for students to be able to apply the valuation models and other analytical tools discussed in the course using data from actual companies. To meet this objective, the course is structured around building the knowledge and skills needed to complete a valuation project. The course also considers applications of fair value accounting standards, such as SFAS 157 and SFAS 159 in U.S. Generally Accepted Accounting Principles (GAAP) and their counterparts in International Financial Reporting Standards (IFRS).

Credits:

3.00

Credit Hours:

Prerequisites:

Corequisites:

Exclusions:

Level:

Instructional Type:

Lecture

Notes:

Additional Information:

Historical Version(s):

Institution Website:

www.nd.edu

Phone Number:

(574) 631-5000

Regional Accreditation:

North Central Association of Colleges and Schools

Calendar System:

Semester

The Course Profile information is provided and updated by third parties including the respective institutions. While the institutions are able to update their information at any time, the information is not independently validated, and no party associated with this website can accept responsibility for its accuracy.