Valuation and Profitability Analysis

• Fundamental valuation
• Valuation models
• Cost of capital
• Rearrangements of accounting information for investor oriented analyses
• Forecasting and valuation
• Profitability analyses
• Sensitivity analyses
• Tax and valuation

Knowledge

The student will have knowledge of different methods for valuation, different cash flows and their application for valuation purposes, on consistency in using required rate of return for all types of businesses and on profitability concepts such as profitability, residual income and internal rate of return. The student will also have knowledge og valuation issues regarding Financial Reporting, including knowledge about the terms fair value and fair value and value in use, as well as insight on the significance of tax positions regarding required rate of return and valuation

Skills

The student will have skills in solving business problems, with emphasis on valuation, and with a critical look assess which methods that are appropriate in different situations.

General Competence

The student will have general competence in integrating and applying different fields of study such as financial theory and accounting with regard to valuation and profitability analyses of businesses.

Lectures and exercises