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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Equity Valuation (CMSE11096)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityNot available to visiting students
SCQF Credits15 ECTS Credits7.5
SummaryThe 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.
Course description 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;
Valuation Models;
Industry analysis and forecasting;
Accounting Analysis;
Market valuation of firms;
Discounted Cash Flow Analysis in Practice;
Valuing Corporate Governance;
Valuing IPOs;
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)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Course Delivery Information
Not being delivered
Learning Outcomes
On completion of this course, the student will be able to:
  1. Understand and critically discuss concepts of: analysis and analysts; strategy and valuation; and analysing accounting.
  2. Understand and apply skills in practical financial analysis to: financial analysis, forecasting, valuation models and valuation practice.
  3. Understand and apply financial analysis to advanced topics of analysing debt, corporate restructuring, capital structure and analysing governance
Reading List
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.
Additional Information
Graduate Attributes and Skills Cognitive 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 organiserProf Jens Hagendorff
Tel: (0131 6)51 1037
Course secretaryMrs Kelly-Ann De Wet
Tel: (0131 6)50 8071
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