Postgraduate Course: Equity Valuation (CMSE11470)
||College||College of Arts, Humanities and Social Sciences
|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.
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.
Topics covered in this course include the valuation process and models, industry analysis and forecasting, accounting analysis, the market valuation of firms and their corporate governance arrangements.
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. 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|| None
Course Delivery Information
|Academic year 2020/21, Not available to visiting students (SS1)
||Block 4 (Sem 2)
|Learning and Teaching activities (Further Info)
Lecture Hours 15,
Seminar/Tutorial Hours 4,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
|Additional Information (Assessment)
||Group Assignments 100% assessing all learning outcomes.
||Students are strongly encouraged to obtain feedback by asking/answering questions. Students will also get feedback on their assignment.
|No Exam Information
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