CORPFIN 7039 - Equity Valuation & Analysis (M)

North Terrace Campus - Semester 2 - 2016

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.

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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
Available for Study Abroad and Exchange	Y
Prerequisites	ACCTING 7019, CORPFIN 7005, COMMERCE 7033, ECON 7200
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Mr Graeme Gould

Course Timetable

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

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)
Deep discipline knowledge informed and infused by cutting edge research, scaffolded throughout their program of studies acquired from personal interaction with research active educators, from year 1 accredited or validated against national or international standards (for relevant programs)	1
Critical thinking and problem solving steeped in research methods and rigor based on empirical evidence and the scientific approach to knowledge development demonstrated through appropriate and relevant assessment	2,3 & 5
Teamwork and communication skills developed from, with, and via the SGDE honed through assessment and practice throughout the program of studies encouraged and valued in all aspects of learning	6
Career and leadership readiness technology savvy professional and, where relevant, fully accredited forward thinking and well informed tested and validated by work based experiences	4
Intercultural and ethical competency adept at operating in other cultures comfortable with different nationalities and social contexts able to determine and contribute to desirable social outcomes demonstrated by study abroad or with an understanding of indigenous knowledges	6
Self-awareness and emotional intelligence a capacity for self-reflection and a willingness to engage in self-appraisal open to objective and constructive feedback from supervisors and peers able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate	1-6

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 Modes

No information currently available.

Workload

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 Summary

Mid-semester Test - 15%
Due Date: Week 6
Learning Outcome: 1-4

Assesment - 20%
Due Date: Week 11
Learning Outcome: 1-6

Final Exam - 65%

Mid-semester test: 15 %
Details: The test is compulsory and is 'closed-book'. Details about the test will be disclosed during lectures and made available on the ‘myuni’ website. The test is non-redeemable.

Assignment: 20 %
Details: The assignment is compulsory and will be available on the ‘myuni’ website. There is an individual and group component to the assignment. The assignment can be done in paris or groups of 3 students maximum. The assignment is non-redeemable.

Final Exam: 65%
The final exam will be of 2.5 hours duration. The exam will cover all topics. 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.

Submission

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.

Student Feedback

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 (http://www.adelaide.edu.au/policies/101/) 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
This section contains links to relevant assessment-related policies and guidelines - all university policies.
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Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

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Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator