Diamond Foods, Inc.: A Comprehensive Case in Financial Analysis and Valuation

Abstract

ABSTRACT This real-world comprehensive case provides an experiential assignment to bring alive most major topics addressed in the financial statement analysis and valuation course. By demonstrating the interconnections between different topics, the case also serves as an integrative assignment to develop a holistic understanding of the course. The case presents a platform to develop students' critical-thinking and problem-solving skills. By requiring them to apply the frameworks of strategy and industry analysis, techniques of accounting and financial analysis, and by placing them in the role of a financial analyst, the case develops an understanding of the challenges involved in financial analysis and valuation in a real-world context. The case helps students to experience the power of using financial statements and other publicly available information to derive insights into firm valuation and to appreciate the role of accruals-based and real earnings management in stock valuation.