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GOA INSTITUTE OF MANAGEMENT
Post Graduate Diploma in Management (PGDM) Term IV

EL FI 406: Financial Statement Analysis and Business Valuation
Instructors: Prof. Amiya Sahu

FINANCIAL STATEMENT ANALYSIS AND BUSINESS VALUATION
Instructors: Prof. Amiya Sahu Class of : 2013-15 Course Code : EL FI 406 Credit :3 Academic Year: Second Term: IV Sessions: 20

Objective: This course is aimed at enabling the students:  To strengthen their understanding on the concepts of 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 In this course, the participants will be integrating their knowledge of accounting analysis, strategy analysis, and financial analysis to understand how businesses work, how they generate value and how the value generated is captured in financial statements. Text Book: Business Analysis and Valuation: Text and Cases; Palepu, Healy, Bernard; 3rd Edition; Thomson Reference Books: Financial Statement Analysis and Security Valuation; Penman; 3rd Edition; McGraw Hill Investment Valuation; Damodaran; 2nd Edition; Wiley Detailed Syllabus: Understanding the Financial Statements: understand different types of financial statements and its analysis as a prelude to Business Analysis. Framework for Business Analysis and Valuation: what to look at in business analysis and how to use this information in valuation? Tools for Business Analysis - Strategy Analysis: identify key drivers of profit and risk of a firm; analyze firm’s industry and strategy which creates a sustainable competitive advantage. Make rational assumptions to forecast a firm’s future performance. - Accounting Analysis: does the accounting system capture a firm’s business economics, identify accounting distortions and make adjustments. - Financial Analysis: understand past and current performance of a firm using ratios and cash flows. Is the performance sustainable? -
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