6-3: Financial Statement Extraction, Interpretation, & Analysis

Financial statement literacy, interpretation, analysis, and reconstruction.

6-5: Core Operations & Metrics

Identification of operating assets, net financial obligation, and common equity. Progression of financial statement extraction of financial activities and equity accounts.

6-6: Advanced DuPont Analysis

Use of core metrics to disassemble the return on common equity, return on net operating assets, and return on financial leverage to reveal useful passageways.

Equity Valuation & Analysis

"Value strategies yield higher returns because these strategies exploit the suboptimal behavior of the typical 

investor and not because these strategies are fundamentally riskier." - Lakonishok, Shleifer, & Vishny, Journal of Finance, 1994

7-1: Residual Income Models

Measurements of the value created in excess of the expected return of equity shareholders. Multiple methods of measuring residual income produce a range of values. 

7-2: Equity Valuation Models

Residual income models are used within a larger model to forecast future performance.

7-3: Equity Pricing

Using residual income and equity valuation models to produce a range of equity prices, or throttling the weighted average cost of future capital to drive valuations to a singular price.