Advanced Financial Analysis and Valuation

This unit develops students’ ability to analyze corporate financial statements, compute and compare key ratios, and perform valuation of debt and equity using DCF, terminal value, multiples, and simulation techniques. It also examines bond pricing, analyst rules, ethical and regulatory responsibilities, and real-world failures (e.g., Enron, mortgage crisis) to prepare learners for deal structuring and client-facing investment banking activities in the final unit.

Learning Objectives

• Analyze cash flow statements and compute liquidity, profitability, efficiency, and leverage ratios to assess firm performance and compare companies using industry benchmarks.
• Apply valuation techniques—including discounted cash flow with terminal value, comparable multiples, and Monte Carlo simulation—to estimate intrinsic equity and bond values and interpret valuation sensitivity.
• Evaluate bond pricing, yield-to-maturity, creditor position, and the implications of capital structure on investor claims and equity valuation.
• Demonstrate understanding of analyst rules, professional ethics, conflict-of-interest management, and recognize indicators of accounting fraud and systemic risk through case study analysis (e.g., Enron, Lehman Brothers, mortgage crisis).