BUSM 7083 Security Analysis and Portfolio Theory

Credit Points 10

Legacy Code 51212

Coordinator Heath Spong Opens in new window

Description This subject examines the valuation of assets, firms and securities. The focus is on the attempt by active investors to identify mispriced securities through projection of a firm's future cash flows based on pro forma financial statements, translating those projections to values and dividing the firm value among the different security holders of the firm. Students develop their understanding of accounting, finance and economic concepts in this applied unit by building models of a firm and conducting analyses of the equity valuation.

School Business

Discipline Investment and Securities

Student Contribution Band HECS Band 4 10cp

Check your fees via the Fees page.

Level Postgraduate Coursework Level 7 subject


Students must be enrolled in a postgraduate Business program.

Learning Outcomes

On successful completion of this subject, students should be able to:

  1. Analyse financial and non-financial company and industry information;
  2. Assess a company's future prospects;
  3. Classify the concepts and limitations of traditional valuation approaches;
  4. Valuate different types of securities;
  5. Classify the concepts of alternative valuation approaches;

Subject Content

Introduction to valuation
Understanding the business
Accounting Analysis
Financial Ratio Analysis
Cash Flow Analysis
Forecasting Details
The cost of capital
Valuation ratios
Some complications


The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.

Type Length Percent Threshold Individual/Group Task
Intra-session Exam 1.5 hours 20 N Individual
Report 2,000 words 20 N Group
Final Exam 2 hours 50 N Individual
Reflection 500 words 10 N Individual

Prescribed Texts

  • Lundholm, R & Sloan, R 2013, Equity valuation and analysis, 3rd edn, McGraw-Hill.

Teaching Periods

Quarter 2 (2024)

Parramatta City - Macquarie St


Subject Contact Heath Spong Opens in new window

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