Course unit title

Business Analysis and Valuation

Course unit code

AKK610

Type of course unit (compulsory, optional)

Optional

Level of course units (according to

EQF: first cycle Bachelor, second cycle Master)

Second Cycle Master

Year of study when the course unit is delivered (if applicable)

2021–2022

Semester/trimester when the course unit is delivered

3rd semester

Number of ECTS credits allocated

4.8 ECTS

Name of lecturer(s)
  1. Dr. Wiwiek Dianawati, MSi, Ak.
  2. Prof. Dr. Hj Sri Maemunah Soeharto, SE
  3. Nartyan Adhana, SE., MBA.

Learning outcomes of the course unit
  1. Students are able to understand the framework of business analysis and valuation using financial reports and business strategy analysis
  2. Students are able to understand and implement accounting and financial analysis
  3. Students are able to understand and implement prospective analysis consisting of forecasts, theories and concepts of valuation, as well as their implementation
  4. Students are able to understand and identify the capital market, financial information, pricing on assets, and financial statement information
  5. Students are able to understand and analyze decisions to lend, credit analysis, and distress prediction
  6. Students are able to understand corporate restructuring, financial information, communication and organizational management

Mode of delivery (face-to-face, distance learning)

Face-To-Face and Distance Learning (using AULA UNAIR)

Prerequisites and co-requisites (if applicable)

-

Course content
  1. The role of financial reporting in capital markets
  2. The demand and supply for financial statement information
  3. From business activities to financial statements
  4. From financial statement to business analysis
  5. Industry analysis
  6. Degree of actual and potential competition
  7. Bargaining power in input and output markets
  8. The power of supply and buyers
  9. Competitive strategy analysis
  10. Corporate strategy analysis
  11. Institutional framework for financial reporting
  12. Accrual accounting
  13. Delegation of reporting to management
  14. Factors influencing accounting quality
  15. Steps in performing accounting analysis
  16. Value of accounting data and accounting analysis
  17. Recasting financial statements
  18. Overstated and understated assets
  19. Understated liabilities
  20. Equity distortion
  21. Ratio analysis
  22. Decomposing profitability
  23. Assessing operating management
  24. Evaluating investment management
  25. Evaluating financial management
  26. Assessing sustainable growth rates
  27. Cash flow analysis
  28. Overall structure of forecast
  29. Practical framework of forecasting
  30. Performance behavior
  31. Sales growth behavior
  32. Earnings behavior
  33. Relationship of forecasting to other analysis
  34. Making forecasts
  35. Sensitivity analysis
  36. Defining value for shareholders
  37. Discounted dividends valuation models
  38. Discounted abnormal earnings valuation models
  39. Valuation using price multiples
  40. Shortcut forms of earnings based valuation
  41. Discounted cash flow model
  42. Comparing valuation methods
  43. Computing a discount rate
  44. Detailed forecasts of performance
  45. Terminal values
  46. Computing assets and equity values
  47. Some practical issues in valuation
  48. Investor objectives and investment vehicles
  49. Equity security analysis and market efficiency
  50. Active and passive management- investment approach
  51. Capital market reaction to firm oriented announcements
  52. Association between security returns and account earnings
  53. Market efficiency anomalies
  54. Equilibrium theories of equity security
  55. expected returns (CAPM, APT and linkage between CAPM and APT)
  56. Equilibrium theory of option pricing
  57. Economic determinants of beta and variance
  58. Estimation of beta and variance
  59. Information source for loan decisions
  60. Descriptive analysis of existing loan decisions
  61. Quantitative approach to loan decisions
  62. Existing loan decisions and accounting alternatives
  63. Rating of debt securities
  64. Market for credit
  65. Credit analysis process in private debt markets
  66. Financial statement analysis and public debt
  67. Prediction of distress and turnaround
  68. Explaining corporate restructuring behavior
  69. Source of value in corporate restructuring
  70. Information source about firm value
  71. Motivation for mergers and acquisitions
  72. Acquisition pricing
  73. Acquisition financing and form of payment
  74. Acquisition outcome
  75. Governance overview
  76. Management communication with investors
  77. Communication through financial reporting
  78. Communication through financial policies
  79. Alternate forms of investor communication

Recommended or required

reading and other learning resources/tools
  1. Palepu and Healy, 2013. Business Analysis and Valuation, 5th edition, South-Western College Publishing. (code : PH)
  2. Subramanyan, 2014. Financial Statement Analysis, 11th edition, Mc Graw Hill (code: SUB)
  3. Ellis J. Williams, David, 1993. Corporate Strategy and Financial Analysis, Pearson Education Limited.
  4. Foster, George, 1986. Financial Statement Analysis, 2nd edition, Prentice
  5. Hall, New Jersey. (code : GF)

Planned learning activities and teaching methods
  1. Lectures
  2. Discussion
  3. Individual assignments

Language of instruction

Indonesian

Assessment methods and criteria

Midterms 40%, Finals 60%