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Advanced Financial Statement Analysis and Valuation D, 7.5 Credits

Swedish name: Advanced Financial Statement Analysis and Valuation D

This syllabus is valid: 2017-08-21 and until further notice

Course code: 2FE208

Credit points: 7.5

Education level: Second cycle

Main Field of Study and progress level: Business Administration: Second cycle, has only first-cycle course/s as entry requirements

Grading scale: Three-grade scale

Responsible department: Business Administration

Established by: Rector of Umeå School of Business and Economics, 2014-06-04

Revised by: Rector of Umeå School of Business and Economics, 2016-11-03


The course aims to provide students with relevant theories, methods and models for valuing companies and their securities, primarily equity (common stock). The course deals with the analysis of financial statement information and the use of this information for business strategy analysis, performance evaluation and investment decisions. Accounting and discounted cash flow approaches to valuation are discussed as are forecasting of dividends, earnings, cash flows and pro forma analyses. During the course, students will also be introduced to the code of academic conduct, e.g. referencing, or how to avoid plagiarism and cheating.

Expected learning outcomes

After successful completion of the course, the student should be able to:

  • value the equity, operations and debt of companies using different valuation approaches/models and financial statement information
  • analyze and reformulate financial statements to uncover a firm’s business strategy and value drivers so as to facilitate forecasting and valuation
  • analyze market prices, value drivers and financial measures, e.g., profitability, growth, P/B and P/E ratios, and their relations to estimated fundamental value
  • explain the relations between accounting standards, e.g. IFRS and US GAAP, accounting methods and value
  • practice working in teams in which the members may differ as regards field of specialization, gender, nationality and cultural background
  • conduct, write, present and critically review an equity research project
  • describe, recognize and apply the code of academic conduct to the student’s own work.

Required Knowledge

90 credits with a minimum of 75 credits in Business Administration.  At Basic level (A-level) and Intermediate level (B-level) a minimum of 60 credits in Management, Marketing, Accounting and Finance courses. At least 15 credits Accounting (financial accounting, financial statement analysis or management accounting) or 7.5 credits in Finance. At the C-level (Bachelor), a minimum 15 credits.

Proficiency in English equivalent to Swedish upper secondary course English B or the equivalent.

Form of instruction

Learning is supported by lectures, seminars, literature i.e. text book and research articles, cases and projects. Students are expected to take an active part in every aspect of the course.

Examination modes

Examination is based on a written comprehensive exam, on successful completion of a project and an individual exam on the code of academic conduct. The course is given and examined in English.

The following grading system will be used:
Pass with distinction (Väl godkänd, VG, 75% or more),
Pass (Godkänd, G, 50% or more)
Fail (Underkänd, U, less than 50%).

Grades on the course are awarded when the student has passed all examinations and compulsory course elements.
To receive the grade Pass with distinction (VG) in the 30 ECTS course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three out of four modules. In other courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

A student who does not pass at the time of the written examination will be offered an opportunity to sit a further examination within a month. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.
In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module. If the form of examination does not permit repetition other forms of re-examination may be used.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

If a student fails to present a photo ID at the occasion of a written examination cannot have his or her results registered.

A student who has passed an examination can not redo the examination to get a higher grade.

Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the thesis manual, Thesis Writing in Business Administration). Urkund records may be used for control.

The lectures are designed to facilitate students towards achieving expected learning outcomes and can explain, supplement and provide contrast to the course literature and other relevant course materials.


Other regulations

Academic credit transfers are according to the University credit transfer regulations.


Valid from: 2017 week 34

Course literature;

Penman Stephen H.
Financial statement analysis and security valuation
5th ed. : New York : McGraw-Hill Higher Education : 2012 : 740 s. :
ISBN: 978-0-07-132640-7 (pbk.)
Search the University Library catalogue