Browse CFA Level 2

Chapter 26: Valuation Implications of FSA

In this section

  • Linking Accounting Adjustments to Equity Valuation
    Explore how restating financial statements, normalizing earnings, and scrutinizing discretionary accruals can reshape equity valuations for CFA Level II.
  • Credit Analysis Tools and Ratios
    A deep dive into how credit analysts assess a firm's downside risk, including the key ratios, adjustments for off-balance-sheet items, cash flow sustainability, covenants, and macro factors.
  • Cost of Capital Impacts from Accounting Choices
    Learn how accounting methods can alter perceived risk, affect a firm’s weighted average cost of capital (WACC), and ultimately shape valuation outcomes.
  • Vignette: Balancing FSA with Valuation Models
    Explore how nuanced adjustments to financial statements can dramatically alter valuation outcomes, focusing on intangible assets, leases, and the cost of capital in a real-world multinational tech scenario.
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Chapter 25: Advanced Ratio and Trend Analysis
Chapter 27: Regulatory and Ethical Considerations