Resumen

Financial Statement Analysis & Valuation - Summary - Tilburg university - MSc Finance / Accounting

7 veces vendidas

Grado
323059-M-6 (323059M6)

Institución
Tilburg University (UVT)

Instagram: ECOsummaries DM me for 20% discount! Summary for the course 'Financial Statement Analysis & Valuation'. This summary was written in order to study for the final. Everything you need to know is available in this summary. Instagram: ECOsummaries DM me for 20% discount!

[Mostrar más]

Última actualización de este documento: 10 meses hace

Vista previa 4 fuera de 58 páginas

Ver ejemplo

Subido en 26 de marzo de 2024
Archivo actualizado en 28 de marzo de 2024
Número de páginas 58
Escrito en 2023/2024
Tipo Resumen

ecosummaries
msc accounting
msc finance
finance
accounting
fsa
fsav
finance summary
accounting summary
fixed income
financial statement analysis
tilburg university
tilburg university summary

Institución
Tilburg University (UVT)
Estudio
Finance
Grado
323059-M-6 (323059M6)

Seguir

ecosummaries

Miembro desde 4 año 191 documentos vendidos

6,99 €

Añadir al carrito

Añadir a la lista de deseos

100% de satisfacción garantizada
Inmediatamente disponible después del pago
Tanto en línea como en PDF
No estas atado a nada

FINANCIAL
STATEMENT ANALYSIS
& VALUATION:
SUMMARY

@ECOsummaries
→ 20% discount

1

,Table of contents
Lecture 1_________________________________________________page 3-4
Practise session 1__________________________________________page 5-7
Lecture 2_________________________________________________page 8-12
Practise session 2__________________________________________page 13-15
Lecture 3_________________________________________________page 16-21
Practise session 3__________________________________________page 22-26
Lecture 4_________________________________________________page 27-30
Practise session 4__________________________________________page 31-35
Lecture 5_________________________________________________page 36-41
Practise session 5__________________________________________page 42-45
Lecture 6_________________________________________________page 36-50
Practise session 6__________________________________________page 51-53
Lecture 7_________________________________________________page 54-58

2

,Lecture 1 – Valuation drivers
Introduction:
Firm value: discounted sum of expected future cash flows (economic value)
Financial statements are not used to derive a single true/false equity value
→ Does not exist!
Accounting: language to measure and communicate firm performance
Main goal: find out if economic value is equal to the market value (comparing opinions)
Three steps of equity valuation:
1. Understand the past
2. Forecasting the future
3. Valuation
Valuation:
NPV: net present value
Value: present value of the expected FCFs
Discounted Dividend Model (DDM): uses dividends as main parameter (rarely used)

Problems:
- Dividend is a choice, and does not reflect performance correctly.
→ E.g., paying out dividends, while still making losses.
- Dividends are discretionary (avoid cutting dividends in times of losses as this is a bad look)
- Many firms don’t even pay dividends
- Dividend irrelevance theorem
Earnings-based valuation:
Graphical representation:

3

, Mathematical representation:
(1) Price:
(2) Clean surplus relation: change in shareholders equity
→ = Common equity (CE) last period + Net income (NI) – dividends (DIV)
(3) Dividends:
(4) Plugging (3) into (1):

Note: past information (CE0) + future information (expected difference between realized
return on equity (NIt) minus expected rate of return (r * CEt-1))
Return on equity (ROE) = net income / common equity = NI / CE
Dirty surplus: some income items are not in the income statement but are directly in the
statement of changes in equity.
Valuation drivers:

1. Investment growth (g): hidden in the change of CE, which can grow or decrease.
- Profitability is not the only important thing
Example: 10% return on $100 is less impressive than 10% on $1.000.000
- Investments can be cyclical, regional & structural.
2. Risk (r): compare to risk-free rate to see if any value is created (realized return – Rf > 0)
- Discount rate (r) is measure of uncertainty as we don’t know expected values 100% sure.
→ Use asset pricing models to determine value of discount rate (r).
3. Profitability (ROE): return on equity
- Similar to the return on investments (ROI), but then for equity investors.

- Hence, ROE is the rate of return that equity owner receives.
→ ROE must be higher than the opportunity costs (r) in order to generate value.
→ ROE > r
Constant growth:
Assumptions:
1. Constant ROE
2. Capital grows by g each year

4

Los beneficios de comprar resúmenes en Stuvia estan en línea:

Garantiza la calidad de los comentarios

Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!

Compra fácil y rápido

Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.

Enfócate en lo más importante

Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!

Preguntas frecuentes

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

100% de satisfacción garantizada: ¿Cómo funciona?

Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ecosummaries. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for 6,99 €. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

45,681 summaries were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Empieza a vender

Resumen

Financial Statement Analysis & Valuation - Summary - Tilburg university - MSc Finance / Accounting

Información del documento

Temas

Escuela, estudio y materia

Vendedor

Comentarios recibidos

Vista previa del contenido