Business and Entity Valuations
Duration
- One Semester or equivalent
Contact hours
- 36 hours
On-campus unit delivery combines face-to-face and digital learning.
2023 teaching periods
| Hawthorn Higher Ed. Semester 2 |
||
|---|---|---|
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Corequisites
Nil
Aims and objectives
The aim of this unit of study is to provide 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 framework and techniques are examined in detail with particular emphasis on the application of these techniques in equity valuation decisions.
Students successfully who complete this unit will be able to:
1 Apply advanced knowledge to valuation models and frameworks expertise in valuing public and private companies including special applications such as distressed firms in different international contexts.
2 Apply advanced problem solving methodologies that reconstruct financial statements to facilitate rigorous financial analysis and develop the expertise of linking quantitative financial data with qualitative data. Apply research principles and techniques to evaluate key valuation variables, assess and quantify risks to free cash flows and attain the value of the firm that leads to sound recommendations to the investor community and financial markets.
3 Critically discuss the role of ethics for analysts, identify the code of ethics and regulations in different international settings, and reflect on practices to instil self-regulation.
Courses with unit
A core unit of study in the suite.Unit information in detail
- Teaching methods, assessment, general skills outcomes and content.
Teaching methods
Scheduled hours: Class (12 x 3 hrs)
or
Scheduled hours: 6x6 hour blocks
Assessment
1. Research Assignments X 2 (Group) 30-40%
2. Presentation (Individual) 10-20%
3. Final Exam (Individual) 40-60%
2. Presentation (Individual) 10-20%
3. Final Exam (Individual) 40-60%
General skills outcomes
During this unit students will receive feedback on the following key generic skills:
- Teamwork skills
- Analysis skills
- Problem solving skills
- Communications skills
- Ability to tackle unfamiliar problems
- Ability to work independently
Content
- Approaches to valuation and financial statement analysis
- 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 analysis: dividend discount models, free cash flow valuation models and relative valuation models
- Valuing financial services and ‘fintech’ firms
Study resources
- Reading materials.
Reading materials
Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.