3 Weeks
Self Study
Included
Available
Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the course. We confirm enrollment eligibility within one week of your application.
Module 1: Understanding Financial Statements
Case Studies
Flowers Foods
Takeaways
Accounting is not equivalent to economics
Financial statements have a standard structure and consistent elements
Earnings (net income) and cash flows can diverge
Key Exercise
Finding key financial statements
Differentiating between assets and expenses
Revenue and Expense recognition
Module 2: Analyzing Financial Statements
Case Studies
Flowers Foods
Dave’s Killer Bread
Takeaways
Ratios are a way to analyze, standardize, and compare many things
Key ratios for financial statement analysis are P-to-B, PE, and gross margin
Key Exercises
Calculating valuation and profitability ratios
Matching company financials to industries with ratios
Module 3: Valuation Using Comps
Case Study
Albertsons
Takeaways
Market prices are a way to value public companies
Ratios from comparable public companies can substitute for market prices
Key Exercise
Calculating enterprise value
Calculating enterprise value to EBITDA ratio
Module 4: Discounting and Cost of Capital
Case Studies
Sparkle!
Flowers Foods
Takeaways
Simple formulas relate FV to PV
A good business is a growing perpetuity
The cost of capital (“K”) is the rate to turn FV into PV
K can be estimated with two statistics (“beta” + the “market risk premium”) + the risk-free rate
Key Exercise
Simple discounting exercises
Using PV to analyze a legal doctrine
Choosing among payment options for settlement of a lawsuit
Valuing a law degree
Valuing Flowers Foods with a DCF model, including debt, using assumed forecasts
Module 5: Forecasting and Discounted Cash Flow Modeling
Case Studies
Sparkle!
Flowers Foods
Takeaways
FCFs and not income are used to model enterprise value
Ratios can help create + test FCF forecasts
Usually we forecast 3-10 years, then end with a “terminal” year (“TY”), including terminal growth (“g”)
Common sense can help estimate” g”
Lawyers can ask 20+ questions to probe and test the reliability of forecasts used to value companies
Key Exercise
Calculating EBIT
Finding and calculating inputs to a set of DCF forecasts
Estimating and using growth forecasts
Completing a set of DCF forecasts for Flowers Foods
Module 6: Valuation Disputes and Advocacy
Case Studies
BP Oil Spill
Adams v. Adams
Matrix v. Rawlings
Disney v. Children’s Television
Golden Telecom
Takeaways
Accounting, finance, and valuation are key elements in many legal disputes
Present value, discounting, the perpetuity formula, and the DCF model are all used by lawyers in various ways in real lawsuits
Accounting, finance, and valuation, like law, involve constrained judgment
Key Exercise
Estimating profit and compensation from the BP Oil Spill Fund for a company harmed by the spill
Valuing the hedge fund partnership interest of a husband involved in a divorce
Calculating harm from a breach of contract
Calculating the benefit from the misappropriation of intellectual property
Deriving the fair value of a company using the DCF model and given inputs
Established in 2001 and adeptly run by the Sringeri Mutt with the benign blessings of Sri Sri Bharathitheertha Mahaswamigal, the College believes in keeping a proactive approach for the overall development of the students.
ASIET is the first self-financing technical education centre to be awarded the ISO 9001: 2008 certification. Our Alumni are prestigious and many occupy responsible positions across prestigious organizations in India and abroad. The institute is affiliated to the APJ Abdul Kalam Technological University, accredited by NBA and approved by AICTE.
Harvard Business School Online launched as HBX in 2014 to deepen the School’s impact and broaden its reach, all while staying true to the HBS mission: to educate leaders who make a difference in the world. The nuance? Now we could reach those leaders wherever they are—in the world, in their careers, and in their lives. Since, HBS Online has educated 100,000-plus learners from more than 175 countries via our innovative online platform.
