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Firm Valuation and ROE Analysis

This course will demonstrate how properly managing the key determinants of return on equity (ROE) increases the value of the firm.

Created byLambers Inc.
BeginnerUpdated Jan 22, 2025

What You'll Learn

  • check_circleUse the concept of interest and time value of money.
  • check_circleDefine value creation.
  • check_circleLink value creation to return on equity and how it is affected by management’s operating, investing, and financing decisions.
  • check_circleUse a spreadsheet-based valuation model using ROE inputs.
  • check_circleCompute the inherent value of Best Buy.
  • check_circleDescribe how this valuation framework should be interpreted and used, which includes conducting sensitivity analysis on the model’s key inputs.

About This Course

This course will demonstrate how properly managing the key determinants of return on equity (ROE) increases the value of the firm. It will provide a brief summary of the relevant features of the time value of money with a special emphasis on the internal rate of return, and then demonstrate what it exactly means to create shareholder value.

Field of Study: Finance

Course Content

2 activities • 4 videos • duration: 1h 9m

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Firm Valuation and ROE Analysis4 videos • 1 quiz • 1.2 hours
  • videocamUnderstanding Time Value of Money
    Duration 19:36
  • videocamCreate Value
    Duration 12:16
  • videocamROE Model
    Duration 21:37
  • videocamFirm Valuation Exercises
    Duration 16:30
  • quizReview Questions
add
Final Assessment1 quiz

Your Instructors

Lambers Inc.

menu_book100 courses
star4,583 reviews

Lambers, Inc. is a leader in review courses for the EA, AFSP, and CPA exams. Lambers also offers IRS Continuing Education for Tax Preparers and CPE for CPAs. Accounting and finance professionals around the world incorporate Lambers products into their training programs.

Jamie Pratt

CPA

Jamie Pratt was the Alva L. Prickett Chair of Accounting at the Kelley School of Business at Indiana University in Bloomington, Indiana, and now holds the title of Distinguished Emeritus Professor. He received his doctorate in business from Indiana University in 1977, and has held faculty positions at the University of Washington (Seattle), the University of Zurich (Switzerland), Northwestern University and INSEAD (Fontainebleau, France), returning to Indiana in 1991. Jamie’s research interests are in financial reporting and analysis, where he has published over 30 articles in the top academic research journals (including The Accounting Review, Journal of Accounting Research, Contemporary Accounting Research, Accounting, Organizations and Society, and Issues in Accounting Education), and he has taught courses in financial reporting and analysis at every level (introductory, intermediate, advanced) in every program (undergraduate, MBA, PhD). He has received over 30 teaching awards and recognitions, and also taught executive education courses throughout the world. Research and/or teaching recognitions have also come from the following organizations: American Accounting Association, American Taxation Association, Big 4 accounting firms (KPMG and PriceWaterhouseCoopers), Indiana Society of CPAs, the Universities of Manchester (England), Kwansei Gakuin (Japan) and Kentucky, and Business Week magazine. His resume also includes two textbooks (one in its 11th edition), two computer-based interactive case platforms, a financial analysis case book, and several instructor guides that support these products.

Credit Information

Is this course eligible for my CPD requirements as a Canadian CPA?

Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.

Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.

What Students Are Saying

4.6 out of 5
Student's Choice
274 reviews
  • MG
    Marta G.
    starstarstarstarstar

    Very detailed course and very hands-on!

  • DS
    Danielle S.
    starstarstarstarstar

    Loved the professor. Explained these complex models well and slowly.

  • BS
    Barbara S.
    starstarstarstarstar

    Very informative. Well delivered Thank you.

  • MH
    Moira-Ann H.
    starstarstarstarstar

    Excellent course. I can use this to help our small business be better at value creation.

Frequently Asked Questions

We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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