Financial statement analysis and security valuation (MRR230)

This course is an advanced course in financial statements and valuation at the master's level. We will examine how the value of firms can be estimated. Knowledge of both finance and accounting is integrated into the course.

The financial statements contain value-relevant information. This course therefore focuses on how this information can be used for valuation purposes. We also focus on how active investors can exploit potential mispricing in the market. Further, earnings differ from cash flows because of accrual accounting. Thus, the course lays out how accruals can help in understanding the value of firms.

Course description for study year 2024-2025. Please note that changes may occur.


Course code




Credits (ECTS)


Semester tution start


Number of semesters


Exam semester


Language of instruction



This course is an advanced course in financial statements and valuation at master's level. The course covers techniques of fundamental analysis, profitability analysis, growth analysis, liquidity analysis and decision making based on this. Upon completion of the course the participant will be able apply their knowledge to perform a thorough analysis of a company. The participant will also be equipped to discuss relevant parameters in a valuation and will be able to perform a sophisticated stand-alone valuation, and evaluate the resulting value.

The course covers the following topics:

  1. How to analyse and conduct performance evaluations based on financial statements, and how they are used in valuation
  2. Cash accounting and accrual accounting
  3. Accrual accounting and valuation
  4. Forecasting and valuation analysis
  5. Analysis of the quality of financial statements
  6. Analysis of risk and return
  7. ESG performance and financial performance

Learning outcome


Upon completion of this course, students will have knowledge of:

  • Have the necessary background knowledge to analyze financial accounting statements from a valuation perspective.
  • Have knowledge of alternative valuation models, including their strengths and weaknesses.
  • Have knowledge of fundamental valuation


Upon completion of this course, students will be able to:

  • Extract value relevant information from financial reports.
  • Analyze historical financial performance.
  • Forecast future performance.
  • Carry out a valuation of a company and evaluate the resulting value.

Required prerequisite knowledge



Form of assessment Weight Duration Marks Aid
Written exam 1/1 4 Hours Letter grades Dictionary, Valid calculator,

Written exam in Inspera. Ordinary exam each semester.

Coursework requirements

Mandatory hand-in

There will be one mandatory submission; a written assignment (individual).

Information about this coursework requirement will be announced on Canvas.

Course teacher(s)

Course coordinator:

Marius Sikveland

Study Program Director:

William Gilje Gjedrem

Course teacher:

Dengjun Zhang

Course teacher:

Marius Sikveland

Method of work

The course is delivered in the form of lectures. Integral to the lectures are problems that the students need to solve in order to fully benefit from the lectures.

Students are expected to use 280 hours to complete the course:

1. Lectures: 50 hours, some of which may be delivered as video lectures.

2. Preparing for lectures: 130 hours.

3. Working on end-of-chapter problems / previous exams: 100 hours.

Overlapping courses

Course Reduction (SP)
Financial statement analysis and security valuation (MØA220_2) 10

Open for

Admission to Single Courses at UiS Business School
Master of Science in Accounting and Auditing Business Administration - Master of Science

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital subject evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.


Search for literature in Leganto