Financial Performance Analysis

In the first part, the teacher presents the theoretical foundations of each of the topics. In the second part, students work on case studies where the theoretical components are applied. In the third part, students have to carry out a group work with an oral presentation on one of the topics discussed in class. Specifically, the work consists of an economic and financial analysis of a listed company, with an essential emphasis on indicators of financial performance and positioning in the competitive market. This company is chosen by the student together with the teacher of the course. All items related to the preparation of accounting elements for financial analysis, financial strength and balance, efficiency and profitability, bankruptcy risk and z-score, growth and value creation, EVA and MVA will be evaluated, as well as other indicators based on discount models. cash flow (DCF).

The evaluation will be made through an individual written test (30%) and the realization, in group, of a work with oral defense (70%).

The main objective of this course is to provide students with a set of instruments and methods that allow them to make diagnoses about a company’s financial situation, about financial performance indicators, as well as make predictions about its future performance. Specifically, it is intended that the student is able to carry out an assessment or study of the feasibility, stability and operability of a business or project.

After successfully completing this course, the student should be able to:

-Identify the sources of information necessary to prepare a financial report and financial performance of a company.

-To be equipped with the most important methods and techniques, as if he were a financial controller financial / CFO to draw his conclusions regarding the economic and financial situation of a company and thus know how to evaluate the company and the business.

1. Basic concepts
2. Financial Equilibrium
3. Return on equity, EPS and growth
4. Productivity and cash flow
5. Operational risk and Financial risk
6. Scoring and rating
7. Credit scoring-insolvency risk models
II- Capital Structure of firms
1. CAPM and estimation cost of capital: Levered e unlevered beta.
2. Types of financial structures
3. Costs and Benefits of debt
4. Opportunity cost
5. Modigliani and Miller Theorem
6. Agency costs and insolvency costs
III- Business valuation
1. Concept of Value
2. Estimation of cash flow
3. Estimation of growth rates and terminal value
4. Models of valuation based on DCF (EVA, MVA, DCF) and special cases
5. Evaluation based on comparative multiples
IV- Strategy and Corporate Restructuring
1. Mechanisms of corporate restructuring, control and economic rationality
2. Corporate governance and corporate control
V- Valuation of investments in real assets

NAO