Business Analysis and Valuation Using Financial Statements

The course emphasizes a practical approach to using financial statements to analyze and value a company's business. We will develop a four part framework based on: 1) industry analysis, and how this can be used to understand a firm's competitive position; 2) accounting analysis, to better understand some of the accounting decisions made by management; 3) financial and ratio analysis to check financial health, monitor progress, and locate potential problems, and 4) forecasting and valuation. You will learn how to apply this framework to gain insight in a variety of situations, such as equity investing, credit analysis, capital policy analysis, merger and acquisition analysis, and for corporate governance and communications. The course will rely on a combination of lectures and hands-on exercises based on the most recent financial statements released by Japanese companies. Active class participation is encouraged, especially for case studies. Upon completion, you should gain much confidence in your ability to extract information from financial statements and use this for equity, credit, or other types of analysis.

1. Gain confidence using and extracting information from financial statements.
2. Understanding some simple tools used for company valuation.
3. Understanding the relationship between industry and company analysis.

Anyone interested in learning how financial statements are used to understand and evaluate companies. Basic (introductory) accounting knowledge is recommended.

None - handouts prepared for each class.

Robert Garone

Robert Garone has lived in Japan and worked in the Japanese financial services industry for over 25 years. He started as a credit analyst with Citibank, moved into equity analysis at UBS and Dresdner Kleinwort Benson, and was the Japan Representative for Frontpoint Partners (a hedge fund purchased by Morgan Stanley) between 2005-2007. He now works as an equity analyst at Optimal Fund Management and periodically conducts finance seminars for Japanese companies. He also speaks Japanese and has taught Japanese-to-English translation at Simul International in 2013. Robert has a BA in Asian Studies from Colgate University and an MBA/MA (Asian Studies) from University of Virginia. In addition to his background in finance, Robert has had an interest in martial arts since high school, when he practiced both Taekwondo and Gojo-ryu karate. In 2014 he resumed his martial arts training, and has since earned a black belt and become a certified instructor in Okinawan Uechi-ryu karate. He views karate as an art for self-defense as well as a means towards mental and physical well-being.