CORPFIN 7039 - Equity Valuation & Analysis (M)

North Terrace Campus - Semester 2 - 2014

The course analyses companies from a fundamental perspective in order to derive an intrinsic value for stock. Topics: Fundamental analysis, determination of growth, discount cash flows models including dividend discount models, free cash flow models and residual income models; relative valuation models including price-earnings and price-book multiples; valuation of private companies, start up companies, companies with negative earnings and mergers and acquisitions.

  • General Course Information
    Course Details
    Course Code CORPFIN 7039
    Course Equity Valuation & Analysis (M)
    Coordinating Unit Adelaide Business School
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Prerequisites COMMERCE 7033, ACCTING 7019 & CORPFIN 7005
    Corequisites ECON 7200
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Miss Arti Jhuremalani

    Semester 2 - Course Coordinator
    Miss Arti Jhuremalani 

    Semester 1 - Course Coordinator
    Mr Graeme Gould
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    By the end of this course students should be able to:
    1. Understand and execute various valuation models
    2. Analyse financial statements and extract relevant information
    3. Recognise and appreciate limitation as well as benefits of valuation models
    4. Appreciate the level of subjectivity involved
    5. Acquire good research skills
    6. Demonstrate good interpersonal communication skills
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2, 3 & 5
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 4
    Skills of a high order in interpersonal understanding, teamwork and communication. 4, 5 & 6
    A proficiency in the appropriate use of contemporary technologies. 5
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1,2,3,4,5
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1,2,3,4,5
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1,2,3,4,5
  • Learning Resources
    Required Resources
    Study guide, lecture notes & Additional readings. Please read study guide and lecture notes in advance of lectures

    Text Books (s) not compulsory, either

    Pinto, Henry, Robinson and Stowe, Equity Asset Valuation, 2nd Edition, John Wiley & Sons, 2010.
    This can be used as a reference book rather than a text.

    Damodaran, Aswath ‘Investment Valuation: Tools and techniques for determining the value of any asset’ 2nd edition, 2002, John Wiley & Sons.

    Students can use these texts as reference books.
    Recommended Resources
    Benninga, Simon Z and O.H Sarig, Corporate Finance: A Valuation Approach, International Edition, 1997, McGraw-Hill.

    Lonergan, W., 2000, The Valuation of Business, Shares and Other Equity, 3rd Edition.

    Lundholm, R. and R.Sloan. 2007. Equity Valuation and Analysis. 2nd Edition.

    Reilly, Frank K. and K.C. Brown, Investment Analysis and Portfolio Management, 7th Edition, 2002.
    Additional references

    JASSA (The Finsia Journal of Applied Finance) Australian professional/ academic publication

    Financial Analysts Journal. US professional/ academic publication

    Arzac, E.R., Valuation for Mergers, Buyouts, and Restructuring, 2005, John Wiley & Sons.

    Copeland, T., T.Koller and J.Murrin, Valuation: Measuring and Managing the Value of Companies, 3rd Edition, 2000.
  • Learning & Teaching Activities
    Learning & Teaching Modes

    No information currently available.


    No information currently available.

    Learning Activities Summary
    Week Number Week Begining Topic Study Study Guide Guide Tutorial
    1 July 28 An introduction to valuation & financial maths Chp 1
    2 August 4 Understanding financial reports Chp 2 1
    3 August 11 Understanding financial reports Chp 2 2
    4 August 18 Discounted cash flow models- DDM, FCF & APV Chp 3 3
    5 August 25 Discounted cash flow models- DDM, FCF & APV Chp 3 4
    6 September 1 Fundamental analysis and forecasting Chp 4 5
    7 September 8 Estimating the discount rate
    Mid Sem Test
    Chp 5 6
    8 September 15 Estimating the discount rate Chp 6 7
    September 22 Mid-semester Break
    September 29 Mid-semester Break
    9 October 6 Market based valuation Chp 7 8
    10 October 13 Takeovers Chp 7 9
    11 October 20 Takeovers Chp 7 10
    12 October 27 Financial distress, cross shareholding and private firms 11
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assesment Due Date and time Weighting Related Learning Outcome

    Assesment 1                                                                      Monday, August 18th, 4 pm 10% 1-6
    Assesment 2                                                                      Friday, Oct 17th, 4 pm 20% 1-6

    Mid-Term test                                                                     Week beginning, September 8th 20% 
    Final Exam                                                                          50% 

    Assignment 1:                                                                    10 %
    Details: The assignment is compulsory and will be available on the ‘myuni’ website. Assignments can be done in groups of 2 or 3 students. The assignment is non-redeemable.

    Assignment 2:                                                                    20 %
    Details: The assignment is compulsory and will be available on the ‘myuni’ website. This assignments can be done in groups of 2 or 3 students maximum. The assignment is non-redeemable.

    Mid-semester test:                                                            20%
    Short- answer questions covering topics 1-3. Closed book.
    Held week beginning, September 8th Bonython Hall (time and date to be confirmed)

    Final Exam:                                                                       50%
    The final exam will be of 2.5 hours duration. A formula sheet will also be provided with the exam paper (see end of course outline).

    Assessment Related Requirements

    Notes on Assessment
    1. To gain a pass for this course, a mark of at least 45% must be obtained on the examination as well as a total of at least 50% overall. Students not achieving the minimum exam mark will be awarded no more than 49.
    2. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the final examination because of poor hand-writing.
    3. Assessment marks prior to the final exam will be displayed on the course website. Students are encouraged to check their marks and notify the Lecturer-in-Charge of any discrepancies.
    4. Students in this course are permitted to take a DICTIONARY (English) into the examination and calculator. A formula sheet will be provided in the exam (see attached).
    Assessment Detail

    No information currently available.


    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

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    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
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