CORPFIN 7039 - Equity Valuation & Analysis (M)
North Terrace Campus - Semester 2 - 2015
General Course Information
Course Code CORPFIN 7039 Course Equity Valuation & Analysis (M) Coordinating Unit Business School Term Semester 2 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Prerequisites COMMERCE 7033, ACCTING 7019 & CORPFIN 7005 Corequisites ECON 7200 Course Description 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, estimating the discount rate, mergers and acquisitions and valuation issues.
Course Coordinator: Mr Graeme Gould
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesBy 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
Required ResourcesStudy 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 ResourcesBenninga, 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.
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
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment SummaryAssesment 1 - 15%
Due Date: Friday, August 28th, 4 pm
Learning Outcome: 5 & 6
Assesment 2 - 15%
Due Date: Friday, Oct 23rd, 4 pm
Learning Outcome: 1-6
Final Exam - 70%
Assignment 1: 15 %
Details: The assignment is compulsory and will be available on the ‘myuni’ website. Assignments must be done individually. The assignment is non-redeemable.
Assignment 2: 15 %
Details: The assignment is compulsory and will be available on the ‘myuni’ website. This assignments can be done individually or groups of 2 or 3 students maximum. The assignment is non-redeemable.
Final Exam: 70%
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 RequirementsNotes 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).
No information currently available.
No information currently available.
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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