Course Catalogue

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The objective of this course is to introduce students to contemporary theory, practice and technology of financial statement analysis and valuation of companies. The course is intended to equip students with critical reasoning, analytical and technical skills necessary for carrying out comprehensive fundamental analysis of company value.

The course will be taught over a period of 10 weeks, and will include ten 2-hour active learning sessions, pre-recorded short video lectures (available on Moodle) and a range of Moodle learning activities.

Normally a grade D3 or above in Financial Accounting 2 and Finance 2, or equivalent.

Financial Statement Analysis (superseded)

None.

Reassessments are normally available for all courses, except those which contribute to the Honours classification. For non Honours courses, students are offered reassessment in all or any of the components of assessment if the satisfactory (threshold) grade for the overall course is not achieved at the first attempt. This is normally grade D3 for undergraduate students and grade C3 for postgraduate students. Exceptionally it may not be possible to offer reassessment of some coursework items, in which case the mark achieved at the first attempt will be counted towards the final course grade.

The aim of this course is to raise students' critical understanding of the theory and practice (and to equip students with the practical skills) of equity valuation and financial statement analysis. The course also aims to promote and develop students' independent thinking and decision making by exposing students to a life-like project. The course is taught from the perspective of an equity research analyst. The course will introduce students to the theory of valuation, approaches to financial statement analysts, and analytical methods and techniques used by professional financial analysts to:

(a) extract, prioritise and evaluate information from the firm's annual reports and other sources, and process it for subsequent use in analysis;

(b) carry out an in-depth analysis of the firm's performance and prospects;

(c) estimate the fundamental value of the firm within the context of the broader market- and firm-specific contexts; and

(d) prepare an equity research report.

The course will also introduce students to relevant academic research in this area.

By the end of this course students will be able to:

1.Critically evaluate the complexities and challenges of equity research practice and professional actors in the market for information and equity research.

2.Conduct analysis and assessment of companies' business and financial performance.

3.Critically assess equity valuation theory and apply appropriate forecasting and valuation models.

4.Develop a critical understanding of writing and designing an equity valuation research report.

5. Work collaboratively in a group to produce a combined piece of coursework, by liaising with other class members, allocating tasks and co-ordinating group meetings."

None