CORPFIN 2502 - Business Valuation

North Terrace Campus - Summer - 2021

This course will provide the framework to price and value both securitised and non-securitised entities (whether that be specific assets or whole companies). This involves the utilisation of both accounting and financial analysis of the entity to determine value. The course will approach the subject from an applied viewpoint to enable participants to practise valuation methods. The course will also incorporate basic capital raising issues, from both the fixed income and equity perspectives.

  • General Course Information
    Course Details
    Course Code CORPFIN 2502
    Course Business Valuation
    Coordinating Unit Adelaide Business School
    Term Summer
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites CORPFIN 1002
    Course Description This course will provide the framework to price and value both securitised and non-securitised entities (whether that be specific assets or whole companies). This involves the utilisation of both accounting and financial analysis of the entity to determine value. The course will approach the subject from an applied viewpoint to enable participants to practise valuation methods. The course will also incorporate basic capital raising issues, from both the fixed income and equity perspectives.
    Course Staff

    Course Coordinator: Md Abdul Wasi

    Email: paskalis.glabadanidis@adelaide.edu.au
    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:

    1. Conduct valuations based on the discounted cash flow method.

    2. Conduct a relative valuation for a company.

    3. Recognize conflicts of interest in valuation contexts

    4. Critically analyse publically available information about what is occurring in financial markets.

    5. Demonstrate a basic understanding of the fixed income securities market
    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)
    1-5
    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
    1,2,5
    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
    3
    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
    3
    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
    1-5
  • Learning Resources
    Required Resources
    Textbook: Damodaran on Valuation, 2nd edition, 2006, John Wiley & Sons
    Online Learning
    Course Lecture notes as well as additional materials (data spreadsheets, etc.) will be made available on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Student learning in this course consists of lectures supported by problem-solving tutorial material covered in lectures.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students in this course are expected to attend and prepare for all topics prior to the scheduled class. As a guide, students are expected to spend 9 hours studying each topic (this includes face-to-face contact, online components, and self-directed study).
    Learning Activities Summary
    Lecture 1 (Topic 1) Syllabus/Introduction to Valuation, DCF, Relative Valuation, Contingent Claim Valuation

    Lecture 2 (Topic 2) Estimating Discount Rates

    Lecture 3 (Topic 3) Measuring Cash Flows

    Lecture 4 (Topic 4) Forecasting Cash Flows

    Lecture 5 (Topic 5) Equity Valuation Models

    Lecture 6 - Mid semester exam (online)

    Lecture 6 (Topic 6) Firm Valuation Models

    Lecture 7 (Topic 7) Relative Valuation: First Principles

    Lecture 8 (Topic 8) Relative Valuation: Equity Multiples

    Lecture 9 (Topic 9) Relative Valuation: Value Multiples

    Lecture 10 (Topic 10) Introduction to Options, Options Strategies and Payoffs

    Lecture 11 (Topic 10 Cont'd) Binomial Option Pricing

    Lecture 12 (Topic 11) Valuing Equity/Debt in the Option Pricing Framework, Real Option Valuation, Bond Valuation
    Specific Course Requirements
    N/A
    Small Group Discovery Experience
    N/A
  • 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
    Assessment Task Task Type Due Weighting Learning Outcome
    Mid Semester Test Individual Lecture 6 35% 1 - 5 
    Final Exam Individual Exam Period 65% 1 - 5
    Total 100%
    Assessment Related Requirements
    Details will be provided on MyUni.
    Assessment Detail
    Mid Semester Test: 35%
    This will be an online test. Further information regarding this assessment will be provided during the lectures.

    Final Exam: 65%
    This will be a three-hour online exam. Further information regarding this assessment will be provided during the lectures.
    Submission
    All assessment tasks are compulsory. 
    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
  • 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.

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