Course Detail (Course Description By Faculty)

Advanced Financial Analysis and Valuation for Global Firms (30131)

The course covers advanced financial analysis and valuation for global firms. It is designed for students that already have a basic familiarity with corporate valuation and DCF analysis (e.g., from corporate finance class or a prior job) as well as solid accounting knowledge. We cover financial analysis of different business models, specific situations (e.g., cyclicals, young growth companies, closely-held firms) as well as the analysis and valuation of foreign companies (e.g., emerging markets, reporting under IFRS). Capital markets have become increasingly global, providing more opportunities for corporate investments and M&A abroad. Evaluating these global investments, however, poses unique challenges for financial analysis (e.g., regarding information, accounting and governance) as well as valuation problems.

This course is likely useful for students who aim for careers in consulting, investment banking, investment management, equity or credit analysis, transaction services, private equity and venture capital, as well as accounting and corporate finance, including M&A functions. It is a capstone class, drawing on several other classes at Booth.

There are no strict prerequisites for this class, so each student decides. However, I highly recommend that you have a basic familiarity with corporate valuation and DCF analysis (e.g., from a prior job or a corporate finance class). I would also recommend that you have taken investments and corporate finance before taking my class. Additionally, you should have solid accounting knowledge, such as Business 30000 or equivalent. You are not required to take Business 30116 but deeper accounting knowledge clearly helps in analyzing financial statements and building valuation models.

You do not need to take Business 30130 first. In fact, there is (conceptual) overlap between Business 30130 and my class, though my class is more advanced and covers different topics and cases.

To help you decide whether you are prepared for my class, I have created a valuation tutorial with a test exercise. I highly recommend that you work through the tutorial and complete the exercise, especially if you are unsure whether you have enough prior knowledge. The tutorial might also be a good refresher prior to the first class. It covers ratio analysis and the DCF model. You can access the Canvas pre-enrollment tutorial.

This class is demanding and potentially overwhelming if you are not prepared to dedicate significant amounts of time and energy. Students should expect 8-10 hours of work per week outside of class for pre-class or post-class videos, reading, preparation, and cases.

Cannot enroll in BUSN 30131 if BUSN 20180 taken previously: strict.



Textbook and Required Materials:

• Valuation: Measuring and Managing the Value of Companies, by Tim Koller, Marc Goedhart and David Wessels, Seventh Ed., McKinsey and Co., 2020.

• Readings and case materials posted on Canvas (see Modules and Library Reserves)

Class participation (15%); homework assignments (50%); final project (35%). No pass/fail grades. No formal auditing (on transcript). Sitting in at the instructor's discretion. For joint degree students, college students and other non-Booth students, I can provide provisional grades but no early final grades.

  • Mandatory attendance week 1
  • No auditors
  • No pass/fail grades
Description and/or course criteria last updated: January 24 2024
SCHEDULE
  • Spring 2024
    Section: 30131-85
    S 1:30 PM-4:30 PM
    Gleacher Center
    304
    In-Person Only

Advanced Financial Analysis and Valuation for Global Firms (30131) - Rauter, Thomas>>

The course covers advanced financial analysis and valuation for global firms. It is designed for students that already have a basic familiarity with corporate valuation and DCF analysis (e.g., from corporate finance class or a prior job) as well as solid accounting knowledge. We cover financial analysis of different business models, specific situations (e.g., cyclicals, young growth companies, closely-held firms) as well as the analysis and valuation of foreign companies (e.g., emerging markets, reporting under IFRS). Capital markets have become increasingly global, providing more opportunities for corporate investments and M&A abroad. Evaluating these global investments, however, poses unique challenges for financial analysis (e.g., regarding information, accounting and governance) as well as valuation problems.

This course is likely useful for students who aim for careers in consulting, investment banking, investment management, equity or credit analysis, transaction services, private equity and venture capital, as well as accounting and corporate finance, including M&A functions. It is a capstone class, drawing on several other classes at Booth.

There are no strict prerequisites for this class, so each student decides. However, I highly recommend that you have a basic familiarity with corporate valuation and DCF analysis (e.g., from a prior job or a corporate finance class). I would also recommend that you have taken investments and corporate finance before taking my class. Additionally, you should have solid accounting knowledge, such as Business 30000 or equivalent. You are not required to take Business 30116 but deeper accounting knowledge clearly helps in analyzing financial statements and building valuation models.

You do not need to take Business 30130 first. In fact, there is (conceptual) overlap between Business 30130 and my class, though my class is more advanced and covers different topics and cases.

To help you decide whether you are prepared for my class, I have created a valuation tutorial with a test exercise. I highly recommend that you work through the tutorial and complete the exercise, especially if you are unsure whether you have enough prior knowledge. The tutorial might also be a good refresher prior to the first class. It covers ratio analysis and the DCF model. You can access the Canvas pre-enrollment tutorial.

This class is demanding and potentially overwhelming if you are not prepared to dedicate significant amounts of time and energy. Students should expect 8-10 hours of work per week outside of class for pre-class or post-class videos, reading, preparation, and cases.

Cannot enroll in BUSN 30131 if BUSN 20180 taken previously: strict.



Textbook and Required Materials:

• Valuation: Measuring and Managing the Value of Companies, by Tim Koller, Marc Goedhart and David Wessels, Seventh Ed., McKinsey and Co., 2020.

• Readings and case materials posted on Canvas (see Modules and Library Reserves)

Class participation (15%); homework assignments (50%); final project (35%). No pass/fail grades. No formal auditing (on transcript). Sitting in at the instructor's discretion. For joint degree students, college students and other non-Booth students, I can provide provisional grades but no early final grades.

  • Mandatory attendance week 1
  • No auditors
  • No pass/fail grades
Description and/or course criteria last updated: January 24 2024
SCHEDULE
  • Spring 2024
    Section: 30131-85
    S 1:30 PM-4:30 PM
    Gleacher Center
    304
    In-Person Only