BUSINESS VALUATION AND FINANCE – RECOMMENDED TOPICS TO STUDY

 

Studying for finance or business valuation exams? Make sure you cover the following topics in your studying!

 

-          Valuation methods: asset approach – going concern issue (https://www.investopedia.com/terms/g/goingconcern.asp) , cost approach – going concern, earnings methods, market approaches

-          Capitalized earnings approach – definition of maintainable earnings, multiplier and non-operating assets (for advanced courses, also review discounted cash flow model method)

-          Users of financial statements and capital markets participants

-          Types of investing and their advantages and disadvantages (growth investing versus value investing)

-          Impact of interest rates on bond markets

-          Peter Lynch’s 6 categories: https://finance.yahoo.com/news/beyond-peter-lynch-6-types-174810445.html

-          Economic moat – definition and strategic application

-          Ratios used to assess performance of a company: Fixed asset turnover ratio, asset turnover, current ratio, inventory turnover, operating cash flow ratio, debt-to-equity ratio, dividend payout ratio

-          Financial statement accounts to consider when assessing financial health of a company: Revenue, Gross Margin; EBITDA; Administrative and salary expense (charitable organizations)

 

These topics were recommended to us by Alla Volodina (York University) to study for exams in the areas of business valuation and finance. These topics are integral to students understanding of these areas and should be included in your study schedule whether you are taking a university or college course.

 

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