LSE SUMMER SCHOOL 2014 BUSINESS ANALYSIS AND VALUATION (AF215)

Transcription

1 LSE SUMMER SCHOOL 2014 BUSINESS ANALYSIS AND VALUATION (AF215) Detailed Course Outline Faculty: Prof. Joanne Horton and Dr Pascal Frantz. Aims and Learning Outcomes: This course aims to introduce students to business analysis and valuation. By the end of the course, students should be able to apply an economic framework enabling them to analyze a firm s expected performance and value the firm s shares. Brief Course Outline: This course first introduces and develops an economic framework for business analysis and valuation. This framework covers key analysis components such as business strategy analysis, accounting analysis, financial analysis, and prospective analysis, with a strong emphasis on equity (stock) valuation. This framework is then applied to a variety of decision contexts including valuation, merger and acquisition analysis, and corporate financial policies analysis. Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study. This course should thus appeal to students interested in corporate finance, equity research, fund management, and strategy consulting. Core Text: K. Palepu, P. Healy, V. Bernard and E. Peek, Business Analysis and Valuation: Using Financial Statements, Text and Cases, CENGAGE (2012). (Earlier editions can also be used.)

2 Teaching Arrangements: Teaching arrangements consist of both lectures and classes. Schedule of Lectures and Classes Morning Afternoon Week 1 Monday 7 th July Lecture 1 Tuesday 8 th July Lecture 2 Class 1 9 th July Lecture 3 Class 2 10 th July Lecture 4 Class 3 11 th July Lecture 5 Class 4 Week 2 Monday 14 th July Lecture 6 Class 5 Tuesday 15 th July Revision Class 1 16 th July Mid-Term Exam* 17 th July Lecture 7 Class 6 18 th July Lecture 8 Class 7 Week 3 Monday 21 st July Lecture 9 Class 8 Tuesday 22 nd July Lecture 10 Class 9 23 rd July Lecture 11 Class th July Lecture 12 Revision Class 2 25 th July Final Exam* *Exams may be scheduled at any time between 9am 5pm on these days. Assessment: Mid-course exam: 50%; Final exam: 50%;

3 BUSINESS ANALYSIS AND VALUATION (AF215) Detailed Course Outline Week 1 Monday: Lecture 1: CoreReadings: Introduction to Business Analysis and Valuation Chapter 1 [Palepu, Bernard, and Healy] Tuesday: Lecture 2: Case Study Business Strategy Analysis Chapter 2 [Palepu, Bernard, and Healy] Starbucks Class 1 Lecture 3: Accounting Analysis Chapters 3 and 4[Palepu, Bernard, and Healy] AOL Class 2 Lecture 4: Financial Analysis Chapter 5 [Palepu, Bernard, and Healy] The Home Depot Class 3 Lecture 5: Cash Flow Analysis Chapter 5 [Palepu, Bernard, and Healy] The Home Depot Class 4

4 Week 2 Monday Lecture 6: Prospective Analysis: Forecasting Chapter 6 [Palepu, Bernard, and Healy] Starbucks Inc Class 5 Tuesday Revision Class 1 Mid-Course Examination Lecture 7: Cost of Equity Capital and Abnormal Earnings Chapter 3 [Beccalli and Frantz] Class 6 Lecture 8: Accounting-Based Valuation Chapter 8 [Beccalli and Frantz] Class 7

5 Week 3 Monday Lecture 9: Implications for Price Multiples Chapter 8 [Beccalli and Frantz] Puma AG Rudolf Dassler Sport Class 8 Tuesday Lecture 10: Cash-Flow-Based Valuation Chapter 7 [Beccalli and Frantz] Class 9 Lecture 11: Structure of Valuations Chapter 8 [Palepu, Bernard, and Healy] Chapter 7 [Beccalli and Frantz] Class 10 Lecture 12: Mergers and Acquisitions and Financial Policies Chapter 11 [Palepu, Bernard, and Healy] Chapter 10 [Beccalli and Frantz] Schneider and Square D Revision Class 2 Final Examination