CORPFIN 7039NA - Equity Valuation & Analysis (M)

Ngee Ann Academy - Trimester 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 7039NA
Course	Equity Valuation & Analysis (M)
Coordinating Unit	Adelaide Business School
Term	Trimester 2
Level	Postgraduate Coursework
Location/s	Ngee Ann Academy
Units	3
Contact	Up to 2 hours per week
Available for Study Abroad and Exchange	N
Prerequisites	ACCTING 7019NA, CORPFIN 7005NA, COMMERCE 7033NA, ECON 7200NA
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.

The delivery of the subject is arranged into two intensive sessions.

The first five topics (Topics 1 – 4) will be covered in the first Intensive Lecture Session

The last four topics (Topics 5 – 8) will be covered in the second Intensive Lecture Session. The dates of the Intensive Lecture Sessions are:

Session 1: June 24 - 26

Session 2: July 15 - 17

The times for each Intensive Lecture Session will be as follows:

Friday: 7 pm – 10 pm

Saturday: 1 pm – 8 pm

Sunday: 9 am – 4 pm

Each session will involve:

· a presentation of issues involved

· discussion relating to suggested activities

· analysis of problems examples

· discussion of appropriate case studies

· spreadsheet examples

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

Text Books (s)

Pinto, Henry, Robinson and Stowe, Equity Asset Valuation, 2nd Edition, John Wiley & Sons, 2010.

References

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

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.

Readings

Study guide, lecture notes & Additional readings

Please read study guide and lecture notes in advance of lectures

Learning & Teaching Modes

'An introduction to valuation

		Text	Study Guide
Topic 1	An introduction to valuation & finanial maths	Chp 1	Chp 1
Topic 2	Understanding financial reports		Chp 2
Topic 3	Discounted cash flow models	Chp 3 & 4	Chp 3
Topic 4	Fundamental analysis		Chp 4
Topic 5	Estimating the discount rae	Chp 2	Chp 5
Topic 6	Market based valuations	Chp 6	Chp 6
Topic 7	Takeovers	Chp 7	Chp 7
Topic 8	Financial distress, cross shareholding and private firms		Chp 8
	Closing thoughts

Workload

No information currently available.

Learning Activities Summary

No information currently available.

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

Test 15%
Assignment 20%
Exam 65%

To pass EVA, students must obtain a grade of at least 40% in the final exam

Assessment Related Requirements

Notes on Assessment

1. To gain a pass for this course, a mark of at least 40% 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.

Assessment Detail

1. Test: the test is compulsory and will take place during the second intensive, Saturday Aug 16th. The test will be of short answer type, be of 1 hour duration and will examine the first 4 topics.

2. Assignments: The assignment will be handed out during the first intensive and will require the compilation of pro- forma financial statements, free cash flows and estimates of present value. (Topics 1- 4). The assignment due date is Friday August 29th and should be handed in to the college by close of business day. The assignment is non-redeemable.

Each assignment can be done in a group of no more than 3 students. It is expected that each student contribute equally to the assignment otherwise marks will be deducted. Assignments should be handed into the College in the first instance. They should be in Word format for text and Excel for spreadsheets

3. Exam: A final exam will cover all topics and will be open book. The final exam will be of 2.5 hours duration and consist of multiple choice questions and short answer type questions.

To pass EVA, students must obtain a grade of at least 40% in the final exam.

Late Assignment Submission

Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 20% mark reduction for each day that it is late. Assignments are non-redeemable.

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.
Fraud Awareness

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.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

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