Deciphering Company Analysis
Book Value, Market Value, ROE, and Industry Classification
About This Course
Course Information
The learning outcomes from this CPD refresher course include: Differentiating book value and market value Calculate return on equity and identify the required rates of return Company analysis and classification Reviewing performance against peer companie
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 1 unit of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Market value vs book value (video)
- Market value vs book value (quiz)
- Company classification (video)
- Company classification (quiz)
What You Will Learn
- Distinguish between book value and market value of equity and explain what drives each
- Calculate return on equity using average book value and compare ROE across companies
- Apply DuPont analysis to decompose ROE into net profit margin, asset turnover, and equity multiplier
- Identify the three main approaches to industry classification: products/services, business cycle sensitivity, and statistical similarity
- Compare commercial classification systems including GICS, Russell Global Sectors, and ICB
- Explain how peer group analysis is used to benchmark company performance against comparable firms
Who This Course Is For
- Finance professionals who want to strengthen their company analysis and equity valuation skills
- Accountants preparing for roles that involve financial statement analysis or investment research
- Analysts looking to refresh their knowledge of industry classification systems and ROE decomposition
Prerequisites
- Basic understanding of financial statements (balance sheet, income statement)
- Familiarity with fundamental accounting concepts such as assets, liabilities, and shareholders' equity
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Course Details
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