Business Analysis and Valuation: IFRS edition

Cover
Brief Contents
Contents
Preface
Acknowledgements
Authors
Part I: Framework
	Chapter 1: A Framework for Business Analysis and Valuation Using Financial Statements
		The Role of Financial Reporting in Capital Markets
		From Business Activities to Financial Statements
		Influences of the Accounting System on Information Quality
		Alternative Forms of Communication with Investors
		From Financial Statements to Business Analysis
		Public versus Private Corporations
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 The Neuer Markt
		Problem 2 Fair Value Accounting for Financial Instruments
		Notes
		Appendix: Defining Europe
		Case: The Role of Capital Market Intermediaries in the Dot-Com Crash of 2000
Part II: Business Analysis and Valuation Tools
	Chapter 2: Strategy Analysis
		Industry Analysis
		Applying Industry Analysis: The European Airline Industry
		Competitive Strategy Analysis
		Corporate Strategy Analysis
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Notes
		Case: Akris: Competition in the High-End Fashion Industry
	Chapter 3: Accounting Analysis: The Basics
		Factors Influencing Accounting Quality
		Steps in Accounting Analysis
		Recasting Financial Statements
		Accounting Analysis Pitfalls
		Value of Accounting Data and Accounting Analysis
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 Key Accounting Policies
		Problem 2 Fashion Retailers' Key Accounting Policies
		Problem 3 Euro Disney and the First Five Steps of Accounting Analysis
		Notes
		Appendix A: First-Time Adoption of IFRS Standards
		Appendix B: Recasting Financial Statements into Standardized Templates
		Case: Toshiba: Accounting Fraud
	Chapter 4: Accounting Analysis: Accounting Adjustments
		Recognition of Assets
		Asset Distortions
		Recognition of Liabilities
		Liability Distortions
		Equity Distortions
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 Impairment of Non-Current Assets
		Problem 2 Audi, BMW, and Skoda's Research and Development
		Problem 3 H&M and Inditex's Non-Current Assets
		Notes
		Case: Accounting for the iPhone Upgrade Program (A)
	Chapter 5: Financial Analysis
		Ratio Analysis
		Cash Flow Analysis
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 ROE Decomposition
		Problem 2 Ratios of Three Fashion Retailers
		Problem 3 The Fiat Group in 2008
		Problem 4 Ahold versus Delhaize
		Notes
		Appendix: Hennes & Mauritz AB Financial Statements
		Case: Carrefour S.A.
	Chapter 6: Prospective Analysis: Forecasting
		The Overall Structure of the Forecast
		Performance Behavior: A Starting Point
		Forecasting Assumptions
		From Assumptions to Forecasts
		Sensitivity Analysis
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 Predicting Tesco's 2017/2018 Earnings
		Notes
		Appendix: The Behavior of Components of ROE
		Case: Forecasting Earnings and Earnings Growth in the European Oil and Gas Industry
	Chapter 7: Prospective Analysis: Valuation Theory and Concepts
		Defining Value for Shareholders
		The Discounted Cash Flow Model
		The Discounted Abnormal Profit Model
		The Discounted Abnormal Profit Growth Model
		Valuation Using Price Multiples
		Shortcut Forms of Profit-Based Valuation
		Comparing Valuation Methods
		Summary
		Core Concepts
		Summary of Notations Used in this Chapter
		Questions, Exercises, and Problems
		Problem 1 Estimating Hugo Boss's Equity Value
		Problem 2 Estimating Adidas's Equity Value
		Notes
		Appendix A: Asset Valuation Methodologies
		Appendix B: Reconciling the Discounted Dividends, Discounted Abnormal Profit, and Discounted Abnormal Profit Growth Models
		Case: Valuation Multiples in Fast Fashion
	Chapter 8: Prospective Analysis: Valuation Implementation
		Computing a Discount Rate
		Terminal Values
		Computing Estimated Values
		Some Practical Issues in Valuation
		Summary
		Core Concepts
		Questions, Exercises, and Problems
		Problem 1 Hugo Boss's and Adidas’s Terminal Values
		Problem 2 Anheuser-Busch InBev S.A.
		Notes
		Case: Ferrari: The 2015 Initial Public Offering
Part III: Business Analysis and Valuation Applications
	Chapter 9: Equity Security Analysis
		Investor Objectives and Investment Vehicles
		Equity Security Analysis and Market Efficiency
		Approaches to Fund Management and Securities Analysis
		The Process of a Comprehensive Security Analysis
		Performance of Security Analysts and Fund Managers
		Summary
		Core Concepts
		Questions
		Notes
		Case: Valuation at Novartis
	Chapter 10: Credit Analysis and Distress Prediction
		Why Do Firms Use Debt Financing?
		The Market for Credit
		Country Differences in Debt Financing
		The Credit Analysis Process in Private Debt Markets
		Financial Statement Analysis and Public Debt
		Prediction of Distress and Turnaround
		Credit Ratings, Default Probabilities, and Debt Valuation
		Summary
		Core Concepts
		Questions
		Notes
		Case: Getronics' Debt Ratings
	Chapter 11: Mergers and Acquisitions
		Motivation for Merger or Acquisition
		Acquisition Pricing
		Acquisition Financing and Form of Payment
		Acquisition Outcome
		Reporting on Mergers and Acquisitions: Purchase Price Allocations
		Summary
		Core Concepts
		Questions
		Notes
		Case: Glencore/Xstrata: Playing Aida's Triumphal March on Top of the Everest
Part IV: Additional Cases
	1 Enforcing Financial Reporting Standards: The Case of White Pharmaceuticals AG
	2 KarstadtQuelle AG
	3 Tesco: From Troubles to Turnaround
	4 Valuing Europe's Fastest Growing Company: HelloFresh in 2017
	5 Spotify's Direct-Listing IPO
	6 The Air France-KLM Merger
	7 Measuring Impairment at Dofasco
	8 The Initial Public Offering of PartyGaming Plc
	9 Two European Hotel Groups (A): Equity Analysis
	10 Two European Hotel Groups (B): Debt Analysis
	11 Fiat Group's First-Time Adoption of IFRS Standards
Index