FINC 3015 Security Analysis and Business Valuation

Credit Points 10

Legacy Code 200921

Coordinator Joseph Masoud Opens in new window

Description This subject analyses companies from a fundamental perspective in order to derive an intrinsic value for securities. The focus is on the attempt by active investors to identify mispriced securities using publicly available information, company reports and financial market information. The analytical techniques of financial statement analysis (e.g. fundamental analysis, free cash flow analysis and pro-forma analysis) and the issue of the "reliability" and "quality" of publicly available information are discussed and explored. Those contemplating careers in investment banking, financial consulting, trust funds, superannuation funds, hedge funds, and brokerage firms will find this applied subject both useful and interesting.

School Business

Discipline Investment and Securities

Student Contribution Band HECS Band 4 10cp

Check your HECS Band contribution amount via the Fees page.

Level Undergraduate Level 3 subject

Pre-requisite(s) ECON 2002

Assumed Knowledge

Knowledge acquired in the corporate financial management and fundamentals of accounting.

Learning Outcomes

On successful completion of this subject, students should be able to:
  1. Collect and critically analyse financial and non-financial company and industry information.
  2. Assess the implications of the macroeconomic environment, industry structure and operations and strategies of a business for its future prospects.
  3. Construct and apply various valuation models to value security and the business.
  4. Critically assess the valuations of a business and of its debt and equity based on discounted cash flow analysis.
  5. Classify the concepts and limitations of traditional valuation approaches.

Subject Content

1. Overview of valuation.
2. Analysis of the industry structure and operational strategies of a particular business.
3. Forecasting and valuing cash flows.
4. Business and security risk analysis.
5. Estimating the required rates of return for a business.
6. Computation of the firm?fs cost of capital.
7. Apply various valuation models to assess and value a business.
8. Assess a company's future prospects.
9. Relative valuation using market comparables.
10. Strategic options: evaluating strategic opportunities.

Assessment

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
Report 2000 words 20 N Group
Intra-session Exam 90 minutes 30 N Individual
Final Exam 2 hours 50 N Individual

Prescribed Texts

  • Titman, S & Martin, J 2011, Valuation, 2nd edition, Pearson.

Teaching Periods

Sydney City Campus - Term 1 (2022)

Sydney City

Day

Subject Contact Neelam Goela Opens in new window

View timetable Opens in new window

Spring (2022)

Online

Online

Subject Contact Joseph Masoud Opens in new window

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Parramatta City - Macquarie St

Day

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window

Sydney City Campus - Term 3 (2022)

Sydney City

Day

Subject Contact Joseph Masoud Opens in new window

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UEH-Session 3 (2022)

Vietnam

Day

Subject Contact Heath Spong Opens in new window

View timetable Opens in new window

Sydney City Campus - Term 1 (2023)

Sydney City

On-site

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window

Spring (2023)

Online

Online

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window

Parramatta City - Macquarie St

On-site

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window

Vietnam Session 3 (2023)

Vietnam

On-site

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window

Sydney City Campus - Term 3 (2023)

Sydney City

On-site

Subject Contact Joseph Masoud Opens in new window

View timetable Opens in new window