Postgraduate Course: Equity Valuation (CMSE11096)
||College||College of Humanities and Social Science
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Not available to visiting students
|Summary||The course aims to prepare students to analyse the financial performance of firms, to assess their prospects and to estimate their valuation. The course is structured primarily from the point of view of investors and analysts, rather than from a company perspective. However this requires both a practical and theoretical understanding.
The course will prepare participants to analyse the financial performance of corporations from around the world, and to show the links between accounting statements, valuation methods and investment analysis. Participants will be comfortable reading financial statements, calculating and understanding accounting ratios, extracting accounting information to make forecasts and valuations. Participants will also gain an understanding of the limitations of financial statements and methods for evaluating the quality of these statements.
The Valuation Process;
Industry analysis and forecasting;
Market valuation of firms;
Discounted Cash Flow Analysis in Practice;
Valuing Corporate Governance;
Valuing Mergers & Acquisitions.
Student Learning Experience
Learning will be through developing an intellectual understanding of value creation and the practical skills required to evaluate that. Students will be required to study theoretical models and evidence. They will be guided through this in lectures but there will also be an emphasis on self-study. The course will try to develop students' interest in the subject and accustom them to monitoring current developments in order to facilitate continued learning after the course.
The group-work assignment provides a different type of learning experience. It is a practical project which requires teamwork. The assignment simulates the approach in investment research where teamwork and individual skills need to be directed and managed to achieve deadlines. As in investment research, teams are rewarded and judged based on thoroughness, team work, creativity, analytical and presentational skills.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Course Delivery Information
|Academic year 2018/19, Available to all students (SV1)
|Learning and Teaching activities (Further Info)
Lecture Hours 20,
Seminar/Tutorial Hours 9,
Formative Assessment Hours 38,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
|Additional Information (Learning and Teaching)
Lecture preparation and follow up 40 hrs; Tutorial preparation 18 hrs; Exam preparation 20 hrs
|Assessment (Further Info)
||Each week the students will get feedback on their tutorial work. Peer group feedback is arranged as part of their assignment and each group also written feedback on their report. General feedback is given on the exam.
||Hours & Minutes
|Main Exam Diet S2 (April/May)||Equity Valuation||2:00|
On completion of this course, the student will be able to:
- Understand and critically discuss concepts of: analysis and analysts; strategy and valuation; and analysing accounting.
- Understand and apply skills in practical financial analysis to: financial analysis, forecasting, valuation models and valuation practice.
- Understand and apply financial analysis to advanced topics of analysing debt, corporate restructuring, capital structure and analysing governance
|Palepu, K.G., Healy, P.M. & Peek, E. (2016): Business Analysis & Valuation: IFRS Edition. Thomson South-Western.|
Additional material including academic papers, analysts reports and financial press will be made available during the course.
|Graduate Attributes and Skills
The course will develop search, analytical, evaluative and presentational skills.
Subject Specific Skills:
Students will gain an ability to investigate, collect and process evidence, synthesis such evidence and present their conclusions. The focus of the course is on understanding and evaluating firms creation of value. Students will be introduced to sophisticated valuation models, the detail of analysts reports and will be required to use financial databases and statistical techniques
|Course organiser||Prof Jens Hagendorff
Tel: (0131 6)51 1037
|Course secretary||Mrs Kelly-Ann De Wet
Tel: (0131 6)50 8071