Accounting-Based Valuation

The objective of this course, which directly builds on materials from the “Using Financial Statements to Evaluate Firm Performance” course, is to further increase your ability to extract, interpret and use information from financial statements. We will emphasize the understanding, organizing and summarizing of financial data for decision-making purposes related to valuation.

The course starts with exploring important advanced financial accounting topics such as pensions, leases, taxes and restructuring/discontinued operations. The remainder of the course is devoted to using financial statement information for equity valuation. Specifically, you will learn to create and forecast a full set of pro forma financial statements to obtain the intrinsic value of the firm using discounted cash flow and residual operating income models. The course will supplement your knowledge of valuation from previous finance courses by focusing on using information in the financial statements to guide the valuation process.

After completing this course, you should be able to:

  • reinforce your knowledge of financial accounting from prior and current coursework,
  • be a more sophisticated user of financial information in terms of where to get information and how to analyze it,
  • build financial statements from scratch through forecasting, and 
  • understand how to value a firm using a complete set of financial statements.