Business and Entity Valuations
Overview
This unit aims to provide students with advanced skills and knowledge on valuation techniques used by analysts in a variety of settings such as equity research, evaluating acquisitions, corporate finance and funds management. Fundamental analysis frameworks and techniques are examined in detail with particular emphasis on their applications in equity valuation decision making. Students will learn about the importance of valuation techniques to measure the operating parameters of the business. This unit teaches the required knowledge for the investment decision-making process. Potential issues in investment process and the use of financial technology are also discussed.
Requisites
26-May-2024
27-October-2024
Learning outcomes
Students who successfully complete this unit will be able to:
- Apply advanced knowledge of valuation techniques to value public and private companies.
- Critically analyse financial statements to facilitate rigorous financial analysis and demonstrate expertise in working with financial data.
- Apply research principles to evaluate key valuation variables and utilise financial technology to produce recommendations for investors and financial markets.
- Critically discuss the role of ethics for analysts, identify the code of ethics and regulations, and reflect on practices to instil self-regulation.
- Work collaboratively in groups
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| On-campus Class | 2.00 | 12 weeks | 24 |
| Online Lecture | 1.00 | 12 weeks | 12 |
| Unspecified Activities Independent Learning | 9.50 | 12 weeks | 114 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assessment | Individual | 40 - 60% | 1,2,3 |
| Case Studies | Individual | 10 - 20% | 1,2,3,4,5 |
| Research Assignment | Group | 30 - 40% | 1,2,3,4 |
Content
- Approaches to valuation and financial statement (ratio) analysis
- Fundamental analysis (sector, industry, company)
- Estimating risk parameters and costs of financing in developed and emerging markets
- Adjusting earnings to reflect capitalisation of operating leases and R&D
- Estimating growth parameters and terminal value for public and private firms
- Valuation of individual firm and equity securities: dividend discount models, free cash flow valuation models and relative valuation models
- Equity market valuation & return analysis
- Debt valuation (analysis of debt)
- Code of ethics
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.