MPAcc · Autumn 2025
MPAcc Common Final Project
Team
Overview
This capstone unifies Financial Statement Analysis and Data Analytics into a single integrated engagement. Your team will develop a defensible initiation report with forecasts and a residual income valuation (eVal/Excel acceptable), then use analytics to validate, challenge, and de-risk your assumptions. Audit and ESG considerations are included as short appendices (for completeness, not as primary valuation drivers).
Case Brief
Develop A Pairs Trading Report: Identify two peer firms; justify a long position for an undervalued company and a short position for the overvalued company, justified by valuation and analytics signals (including screening + scenario analysis).
Project Requirements
Initiation Report Covering both Long and Short Targets
A written report no longer than 25 pages including citations and tables/charts, audit and ESG appendices. Include links or exhibits for dashboards if needed. Submit as a pdf file. This document should include the following analysis:
- A Description of the screening process & factors used to identify target firms (attach files/tables/input/output as appendix)
- A brief summary of the company/industry backgrounds & competitive landscape
- A detailed report of the Financial Statement Analysis used to support your recommendations and valuation assumptions (including quality of earnings, cash flow analysis, and key ratios)
- A detailed description of your forecast assumptions (including descriptions of the processes and analytical tools used)
- A discussion of the key valuation model assumptions (using a residual income model)
- A discussion and support of the recommendation: investment thesis, catalysts, risks to each position, and potential returns
- Appendices covering the material discussed below
Appendices
A set of Appendices included in the initiation report covering the following topics:
- Audit Appendix (1 page max): Identify and describe the Top 2–3 financial reporting risks tied to valuation drivers (e.g., revenue recognition, impairment), for each of these financial reporting risks outline what tests/assurance evidence would reduce estimation risk (one paragraph each).
- ESG Appendix (3 pages max): Identify two material ESG areas likely to affect cash flows and/or cost of capital at one of the two companies. Estimate their impact on earnings and/or cost of capital. Identify the key metric for these critical ESG factors. Briefly detail a high level audit plan for how you would provide assurance over these metrics. Include the audit assertions and risks your audit plan/procedures would address.
Analytics Support Material
An appendix or set of separate files (Excel, PowerBI, Tableau, etc.) that includes the following:
- Support of your screening process (including data sources, factor definitions, and output) if used to identify target firms
- Support of your forecasting assumptions and process (including data sources, variable and model definitions, and output) if used to develop your forecasts
- Support of your scenario analysis and valuation assumptions (including data sources, tying of assumptions to parameters, and output) if used to develop valuation scenario analysis
Residual Income Valuation File
An excel or other file that includes your residual income valuation model that includes the following:
- Clearly labeled accounts and assumptions that tie to your initiation report
Final Presentation and Materials (10-12 minutes per team)
A final presentation delivered to the class and supporting materials (e.g., powerpoint and dashboard materials if applicable) that includes the following:
- A clear discussion of your investment thesis and recommendation
- Discussions of key findings from your financial statement analysis that support your forecast and valuation assumptions
- Discussions of key findings from your data analytics that validate and/or challenge your forecast and valuation assumptions
Final Project Details: Core Deliverables
The final project is a team-based engagement that integrates the core concepts and skills developed throughout the course. Each team will be responsible for preparing a comprehensive report that includes the following components:
- Initiation Report: A detailed analysis of the selected companies, including financial statement analysis, valuation, and risk assessment.
- Data Analytics Integration: Application of data analytics techniques to validate and challenge assumptions made in the initiation report.
- Audit Considerations: A brief appendix discussing relevant audit issues related to the selected companies.
- ESG Considerations: A brief appendix discussing relevant ESG issues related to the selected companies.
Teams are expected to collaborate effectively, leveraging each member's strengths to produce a high-quality report. The final deliverable should be well-organized, clearly written, and professionally presented.
Submission / Important Dates
Final Presentation
Final Project Presentations (both classes).
Final Project Materials (zip file with all materials, one per team)
Final FSA Report; Data Analytics Workbook; Audit and ESG Appendices
Due: