The course focuses on the process of analyzing the company's fundamental value, the phases of which culminate in the preparation of the pro-forma or pro-forma financial statements (Balance Sheet, Income Statement and Cash Flow Statement), which represents a crucial step in this analysis.
In the first part, the course focuses attention on the reclassification models of the financial statements, on the indices and flows. In the second part, the course deals with the construction and analysis of the budget. This is a financial statement prepared by translating certain hypotheses for future management operations into economic and financial quantities. The use of this tool allows you to recreate, as in a sort of laboratory, the business operation and to simulate the effects that different management policies are destined to produce in the future on the economic, financial and equity structures of the company. The logic of the budget estimate finds multiple areas of use. It applies, in fact:
- to companies already in operation, to guide future management programs;
- in project financing operations, which are increasingly numerous today, to judge the self-sustainability of the planned initiative;
- to companies being set up or starting a new company branch (start up), to identify the most appropriate management structures;
- to individual investment projects, to judge their feasibility and convenience.

Summary of topics.
Among the topics that will be treated in the context of the budget analysis for the construction of the pro-forma, we note:
• the logic of reclassification of the balance sheet and income statement;
• the logical construction plan of the Cash Flow Statement;
• the estimate of the EBITDA and the MON;
• the estimate of the commercial net working capital (CCNc);
• the budget for operational self-financing;
• the free cash flow estimate (FCF);
• the estimate of the Net Invested Capital (CIN);
• the estimate of the Net Financial Position (NFP);
• the estimate of the financial requirement.

Among the topics that will be dealt with in the context of the construction of the pro-forma and its evaluation, the following should be noted:
• the general logic and phases of the construction of the pro-forma;
• the basic pro-forma model;
• the development of the basic model: current operating management, structural operational investments and the financial structure;
• the formulation of assumptions: the forecast of sales, operating costs and net working capital, structural investments;
• assessment of assumptions;
• sensitivity analysis;
• the financial sustainability of the pro-forma and its "bankability".

To prepare for the exam, the student has a textbook and other teaching materials prepared by the teacher and delivered during the lessons.

The textbook is:
F. Giunta-M. Pisani, Analysis of the financial statements, APOGEO, Maggioli Editore, 2016.

Chapters of the book:
1. Fundamental analysis and intrinsic value of the company (to be studied)
2. The information base for fundamental analysis
3. Analysis of the competitive environment
4. Analysis of strategies
5. Verification of accounting quality and information collected (to be studied)
6. The management analysis model (to be studied)
7. Budget comparisons
8. The reclassification of the Balance Sheet (to be studied)
9. Reclassification of the Income Statement (to be studied)
10. Preparation of the Financial Statement (to be studied)
11. Business growth (to be studied)
12. Operational profitability (to be studied)
13. Creditworthiness (to be studied)
14. Net profitability (to be studied)
15. Analysis of the consolidated financial statements
16. The pro-forma financial statements: rationale, phases and necessary information (to be studied)
17. The pro-forma financial statements: hypotheses and calculation formulas (to be studied)
18. Evaluation of the pro-forma financial statements