A312:  Financial Statement Analysis

Course Overview

The course picks up where A210 leaves off, and focuses on developing your ability to interpret financial statement information.  The course develops a framework for analyzing financial ratios and applying them to forecast future earnings and value companies.  In addition, the course overviews valuation using the dividend discount model, discounted cash flow and accounting-based valuation approaches, including earnings multiples and comprehensive accounting-based valuation.

The course approach is one of learning by doing, so students will have many opportunities to become more familiar reviewing financial statements, forecasting future earnings and valuing companies using financial statement information.  In addition, the class will include several guest speakers, including Howard Schilit, an expert on “earnings management,” David Siminoff of Capital Research, a fund manager specializing in internet and media stocks, Bob Grady, Managing Director of Banc Boston Robertson Stephens, to talk about earnings forecasting and valuation for IPO firms, and Bruce Cozadd, CFO and Howie Rosen, Research Director of ALZA Corporation, a pharmaceutical firm with some fascinating accounting/valuation issues associated with their R&D funding strategy.

There are two sessions of the class, meeting at 1:20—3:05 pm or 3:20—5:05 on Tuesday and Fridays.  If you have any questions about the course, please feel free to contact me by email (fmcnich@leland.stanford.edu), by phone (723-0833) or in my office (Littlefield 286).  I hope you will be able to join us this fall.