COMM 459 - Financial Statement Analysis
The objective of this class is to provide students with a framework for analyzing a firm’s past performance, estimating its future performance, and valuing its equity. The class also presents all the major valuation models in a unified framework so the student should be facile in moving between discounted cash flow models, residual income models, and models based on market multiples such as the price-earnings ratio and the market-to-book ratio. The class has a financial modeling component, so that as the semester progresses, students will build the pieces of a comprehensive financial statement forecasting and valuation tool. The course illustrates contemporary forecasting and valuation techniques used by practitioners as well as evidence from academic research on the effectiveness of these techniques. Students planning a career in the financial industry, consulting, or general management, will find the knowledge acquired in this course extremely relevant.
Upon successful completion of this course, students will have the knowledge and skills to generate reasonably accurate (or at least logically consistent) forecasts of a firm's future financial performance, including revenues, earnings, asset balances and free cash flows.
Prerequisite: COMM 293 and one of COMM 297, COMM 298 and one of COMM 370, COMM 397.