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Business Analysis & Valuation - MAN00060H

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  • Department: The York Management School
  • Module co-ordinator: Dr. Silvia Pazzi
  • Credit value: 20 credits
  • Credit level: H
  • Academic year of delivery: 2024-25
    • See module specification for other years: 2023-24

Related modules

Pre-requisite modules

Co-requisite modules

  • None

Prohibited combinations

  • None

Module will run

Occurrence Teaching period
A Semester 1 2024-25

Module aims

Based on accounting information, this module introduces an economic framework for business analysis and valuation called fundamental analysis. The primary focus is on integrating key concepts of business strategy, economics, accounting, and finance to effectively evaluate the information content of financial reports, derive forecasts and value businesses, for the purpose of implementing investment strategies and providing consulting services. All lectures are backed by relevant discussions on cutting-edge research in the areas of Market-based Accounting and Business Valuation. Additionally, students are encouraged to analyse the quality of accounting information and to explore empirical studies concerned with the value relevance of accounting information by using real data from financial reports and electronic databases like Worldscope, CSMAR, I/B/E/S, Compustat and CRSP among others. Via these practices, students explore how the value of a stock or operating asset in an efficient market reflects investors’ expectations of a firm’s future performance. This module equips students with key security analysis and valuation skills commonly applied by financial analysts in the investment banking and security trading industry. A reasonable amount of time will also be spent on critical discussions pertaining to the role of theories and industry practices introduced in promoting ethical and sustainable business practices.

Module learning outcomes

By the end of the module, students should be able to:

  • Critically understand the conceptual basis of financial reporting and financial statement analysis through the lens of equity security analysis, investing and valuation.

  • Calculate, apply, and interpret appropriate financial ratios using financial statements and data from financial databases like CSMAR, Worldscope, Compustat, etc.

  • Perform strategy analysis to identify firms’ profit drivers and key risks, and how businesses create value.

  • Critically explain how firms’ assets, liability and earnings numbers may be affected by their accounting choices, opportunistic financial reporting, and differences in analysts’ information environment.

  • Understand, explain, and apply accruals-based and cash flow-based models relevant to business forecasting and fundamental valuation.

  • Apply forecasting techniques to business, and understand the foundation of relative valuation models such as cash and earnings-based models, P/E, book-to-market ratios etc.

  • Demonstrate written communication skills in relation to the analysis of company financial statements from a valuation and risk perspective.

  • Critically integrate and apply concepts from Business Strategy, Economics, Accounting and Finance to analyse business performance and valuation.

Academic and graduate skills:

  • Critical and reflective understanding of the accounting narrative that drives business analysis and valuation.

  • Assimilate and critique, sometimes paradoxical, theories of different theoretical schools.

  • Analytical, numerical, leadership and problem-solving skills.

  • Business strategy analysis and design skills.

  • Ability to independently conduct research and analysis of financial issues through data collection, analysis, synthesis, and reporting.

Module content

Indicative module content is as follows:

  • Understanding financial statements through the lens of equity security analysis, investing and valuation.

  • Reformulated financial statements and ratio analysis

  • Earnings quality and earnings management

  • Analysis of profitability, growth, earnings, and business strategy

  • Forecasting and valuation analysis

  • Discounted cash flow valuation

  • Relative valuation

  • Equity security analysis and valuation

  • Financial Analysts’ forecasts, recommendations, and information environment

Assessment

Task Length % of module mark
Essay/coursework
Essay : Business Analysis & Valuation Group Presentation		 N/A 30
Essay/coursework
Essay : Business Analysis & Valuation Individual Report		 N/A 70

Special assessment rules

None

Reassessment

Task Length % of module mark
Essay/coursework
Essay : Business Analysis & Valuation		 N/A 100

Module feedback

Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy.

Indicative reading

  • Palepu, K. G., Healy, P. M., & Peek, E. (2022). Business Analysis and Valuation (6th ed.). Cengage.

  • Penman, Stephen H., Financial Statement Analysis and Security Valuation, 6th Ed, McGrawHill, (2022).


The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.