What is the value? A study of firm valuation and financial forecasting
This research involves an empirical study of the ways in which financial analysts value firms and their stock, and how they conduct financial forecasts for a firm. This research also shows how the valuation process is linked to financial forecasting. Previous research and a case study will be used to support my studies. The study of the income statement, the balance sheet, and the cash flow statement will aid us in explaining the valuation process. Given a specific case study we will also be conducting a financial forecast of Abbot Laboratories to determine whether or not a larger firm should acquire it. This study will help determine the factors that need to be considered with a larger firm acquiring a smaller firm. It will also help show the importance of firm valuation and a financial forecast.
School:
University of Illinois at Urbana-Champaign
Department:
Actuary Science and Finance
Research Advisor:
David Sinow
Department of Research Advisor:
Finance
Year of Publication:
2002