Course syllabus for Financial statement analysis and corporate valuation

Course syllabus adopted 2023-02-07 by Head of Programme (or corresponding).

Overview

  • Swedish nameFinansiell analys och värdering
  • CodeTEK341
  • Credits7.5 Credits
  • OwnerTIEPL
  • Education cycleFirst-cycle
  • Main field of studyIndustrial Engineering and Management
  • DepartmentTECHNOLOGY MANAGEMENT AND ECONOMICS
  • GradingTH - Pass with distinction (5), Pass with credit (4), Pass (3), Fail

Course round 1

  • Teaching language Swedish
  • Application code 68111
  • Minimum participants15
  • Open for exchange studentsNo
  • Only students with the course round in the programme overview.

Credit distribution

0110 Examination 6 c
Grading: TH		6 c
  • 30 Okt 2024 pm L DIG
  • 09 Jan 2025 am L DIG
  • 21 Aug 2025 pm L DIG
0210 Written and oral assignments 1.5 c
Grading: UG		1.5 c

In programmes

Examiner

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Eligibility

General entry requirements for bachelor's level (first cycle)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Specific entry requirements

The same as for the programme that owns the course.
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Aim

This course aims to provide participants with the tools to understand and perform financial analysis and valuation of companies and their stocks. By understanding a company's financial reports, valuation methods and economic principles, participants will gain a deeper understanding of business operations and how to create value for shareholders. This also provides a better ability to communicate with economists and financial professionals and make qualified decisions to achieve economic goals.

Learning outcomes (after completion of the course the student should be able to)

Knowledge and understanding
  • Students should understand basic business economic concepts related to the different parts of the annual report (such as revenues, costs, assets, and liabilities).
  • Students should have an overview-level understanding of how the stock market works and understand theories about how stocks are valued (such as theories about efficient markets).
  • Students should understand the content of the annual report (such as balance sheets and income statements, cash flow analysis).
  • Students should understand financial key ratios that measure a company's growth, profitability, financial strength, and efficiency (such as return on equity, solvency, and turnover).
  • Students should understand the concepts of corporate social responsibility and sustainability in business valuation, and how it can affect a company's long-term value.
Skills and abilities
  • Students should be able to analyze and evaluate a company's financial results, financial strength, and efficiency.
  • Students should be able to evaluate a company's operational and financial risks and explain how they relate to the company's valuation.
  • Students should be able to apply different business valuation models (such as relative valuation, asset based valuation and valuation based on cash flows, dividends and residual earnings) and use these to perform a simpler valuation of a company.
  • Students should be able to use Excel as a tool for financial analysis and valuation.
  • Students should be able to present a financial analysis and valuation using different techniques (such as Excel, Word, PowerPoint).
Judgement and approach.
  • Students should be aware of the advantages and disadvantages of different valuation models.
  • Based on a financial analysis of a company's position, students should be able to suggest improvement measures.
  • Students should be able to present a financial analysis of a company to a group.


Content

The course includes methods and tools for financial analysis and valuation. Lectures and exercises are interspersed with project work where the theoretical knowledge is put into practical application. The course includes: - Basic economic concepts - Balance sheet - Income statement - Cash flow analysis - Financing - Economic key ratios - Business valuation - Competitor & industry analysis - Calculation of risk versus financial structure ("leverage formula") - Overall analysis of profitability ("du Pont model") The course participants conduct a group project with the aim of carrying out a financial analysis and valuation of a company.

Organisation

The course content consists of lectures and exercises. Students also carry out a project. The lectures introduce and exemplify essential terms and theoretical models. The exercises are used to deepen the basic understanding of the theoretical models and to provide the students with skill sets.

Literature

  • Hjelström, T. Isaksson, A & Nilsson, H, Företagsvärdering: med fundamental analys, (2:a upplagan) Studentlitteratur, Lund, 2022
  • Other literature is announced at the start of the course

Examination including compulsory elements

The course is examined by a written examination and a project. The grades are set based on the result of the written examination. Grades U (=failed), 3-5 are used.

The course examiner may assess individual students in other ways than what is stated above if there are special reasons for doing so, for example if a student has a decision from Chalmers on educational support due to disability.