Palepu Business Analysis And Valuation Pdf

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Business Analysis and Valuation: Using Financial Statements, Text and Cases

Course Objectives To strengthen the understanding of the concepts on Business analysis and Valuation; and its application. To use financial statement information in business analysis and valuation, and To value at least one Indian firm We will be integrating our knowledge of accounting analysis, strategy, and finance to understand how businesses work?

Pre-requisite: Sound understating of accounting analysis, Financial analysis and Strategic analysis, Accessing data from CMIE Prowess and basic knowledge of spreadsheet. Team Project Team of four Select an Industry and at least two companies No more than two teams on one Industry No group can work on same company First come, first serve basis. Analyze the business es of the companies Analyze the financial statements years : Ratios, common size, comparative Develop a set of assumptions and forecast the financial statements for minimum of next years Apply multiple valuation models and recommend buy or sell.

Framework for Business Analysis and Valuation using Fin. Stmt What to look at in business analysis and how to use this information in valuation? Agenda Fin. Information asymmetry and fin. Business activities to fin. Debt Investors Probability of default Determination of lending rates Covenant violations. Management Strategic planning Investment in operations Evaluation of subordinates. Did the firm meet my performance expectations?

What is the value of the firms stock given my assessment of the firms current and future performance? Credit analyst What is the credit risk involved in lending a certain amount to a firm? How well is the firm managing its liquidity and solvency? What is the additional risk created by the firms financing and dividend policies?

Statements: Answer many Qs Corporate manager Is my firm properly valued? Is our investor communication programme adequate on this? Is this firm a potential takeover target? How much value can be created if we acquire this firm?

Management consultant What is the structure of the industry in which the firm is operating? What strategies are pursued by various players?

What is the relative performance of different firms? Role of Financial Reporting in Capital Mkt. Intermediaries add value Enhancing credibility of financial reports Analyzing the information in the financial statements.

Intermediaries use these information To analyze investment opportunities Supplement these information with other sources of information. From Business Activities to Fin. Stmt Business Environme nt Accounting Environme nt. Accounting System The quality of information is determined by the Accounting system Three important features: 1. Accrual accounting 2. Managers reporting strategy. Accrual accounting Fin statements are prepared on accrual basis rather than cash basis Revenue Revenue recognition is governed by the Realization principle Revenue should be recognized when The firm has provided all, or substantially all, the goods or services to be delivered to the customer, and The customer has paid cash or is expected to pay cash with a reasonable degree of certainty.

Deals with expectation of future cash flows Relies on a variety of assumptions How good are the assumptions? How is responsible for these assumptions? Quality of financial information varies across firms and across time, hence challenging to do business analysis.

How do we get True information? Effective financial statement analysis How do we do this? Successful analysts have at as good an understanding of the business economics as do firms managers Need to understand the economic consequences of Investment decisions Operating decisions Financing decisions. Business strategy analysis Identify key drivers of profit; and business risks Qualitative assessment of a firms profit potential Can a firm sustain its competitive advantage?

Is the current profitability sustainable? A good analysis of business enables one to make a sound assumption in forecasting the future performance. Accounting analysis Evaluate the degree to which a firms accounting captures the underlying business reality What kind of distortion are there and what is the degree of distortions?

Can we re-look at the accounting numbers and create unbiased data? Accounting analysis helps in financial analysis. Financial analysis Evaluate current and past performance and assess its sustainability Skills required: Systematic and efficient Use of financial data to explore business issues. Prospective analysis Forecasting a firms future Techniques: Financial statement forecasting and Valuation. Business Analysis using Fin.

Open navigation menu. Close suggestions Search Search. User Settings. Skip carousel. Carousel Previous. Carousel Next. What is Scribd? Uploaded by Harjas Bakshi. Date uploaded Aug 23, Did you find this document useful? Is this content inappropriate? Report this Document. Description: Framework for Business Analysis and Valuation.

Flag for inappropriate content. Download now. Framework for Business Analysis and Valuation. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. How Capital Mkt Works? Savings Communication by entrepreneurs to investors may not be credible! Intermediaries add value Enhancing credibility of financial reports Analyzing the information in the financial statements Fin. Analysts Rating agencies Fin.

Accrual accounting Fin statements are prepared on accrual basis rather than cash basis Revenue Revenue recognition is governed by the Realization principle Revenue should be recognized when The firm has provided all, or substantially all, the goods or services to be delivered to the customer, and The customer has paid cash or is expected to pay cash with a reasonable degree of certainty Net Income?

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[Healy, Paul M.; Palepu, Krishna G.] Business anal Financial Reporting

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Business Analysis and Valuation: Using Financial Statements, Text and Cases

Faster previews. Personalized experience. Get started with a FREE account.

Business Analysis and Valuation: Using Financial Statements

Course Objectives To strengthen the understanding of the concepts on Business analysis and Valuation; and its application. To use financial statement information in business analysis and valuation, and To value at least one Indian firm We will be integrating our knowledge of accounting analysis, strategy, and finance to understand how businesses work? Pre-requisite: Sound understating of accounting analysis, Financial analysis and Strategic analysis, Accessing data from CMIE Prowess and basic knowledge of spreadsheet. Team Project Team of four Select an Industry and at least two companies No more than two teams on one Industry No group can work on same company First come, first serve basis. Analyze the business es of the companies Analyze the financial statements years : Ratios, common size, comparative Develop a set of assumptions and forecast the financial statements for minimum of next years Apply multiple valuation models and recommend buy or sell.

 Мидж… - Доброй ночи, Чед.  - Она направилась к двери. - Ты уходишь. - Ты же знаешь, что я бы осталась, - сказала она, задержавшись в дверях, - но у меня все же есть кое-какая гордость.

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    Figure Capital Markets Savings Financial Information Intermediaries Intermediaries Business Ideas A Framework for Business Analysis and Valuation Using.

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