CORPFIN 7039 - Equity Valuation & Analysis (M)

North Terrace Campus - Semester 1 - 2025

This course analyses companies from a fundamental perspective in order to derive the intrinsic value of stocks. Topics include fundamental analysis and determination of growth; discount cash flows models including dividend discount models and free cash flow models; relative valuation models including price-earnings and price-book multiples; estimating the discount rate; valuation of firms in financial distress, investment in other firms, and mergers and acquisitions.

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Course Details

Course Code	CORPFIN 7039
Course	Equity Valuation & Analysis (M)
Coordinating Unit	Finance and Banking
Term	Semester 1
Level	Postgraduate Coursework
Location/s	North Terrace Campus
Units	3
Contact	Up to 36 hours per Semester
Available for Study Abroad and Exchange	Y
Prerequisites	ACCTING 7019 and CORPFIN 7005
Assumed Knowledge	CORPFIN 7033, COMMERCE 7033, ECON 7200
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Dr Jane Luo

Dr. Jane Luo
Email: jane.luo@adelaide.edu.au

Course Timetable

The full timetable of all activities for this course can be accessed from .

Course Learning Outcomes

On successful completion of this course, students will be able to:

1. Conduct valuations based on the discounted cash flow method.
2. Perform a relative valuation for a company.
3. Utilise the techniques in valuing mergers and acquisitions.
4. Apply the methodologies in valuing firms in financial distress and equity investment in other firms.
5. Critically analyse publicly available information and write a business valuation report.

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

University Graduate Attribute	Course Learning Outcome(s)
Attribute 1: Deep discipline knowledge and intellectual breadth Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.	1
Attribute 2: Creative and critical thinking, and problem solving Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.	2,3,4
Attribute 3: Teamwork and communication skills Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.	5
Attribute 4: Professionalism and leadership readiness Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.	3,4, 5
Attribute 5: Intercultural and ethical competency Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.	1,2,5
Attribute 6: Australian Aboriginal and Torres Strait Islander cultural competency Graduates have an understanding of, and respect for, Australian Aboriginal and Torres Strait Islander values, culture and knowledge.	5
Attribute 7: Digital capabilities Graduates are well prepared for living, learning and working in a digital society.	1-5
Attribute 8: Self-awareness and emotional intelligence Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.	1-5

Learning Resources

Required Resources

Lecture notes, tutorial materials & the study guide provided on myuni website. Please go over the lecture notes and the relevant chapters in advance of lectures.

Text Book(s) not compulsory

Damodaran, 2006, "Damodaran on Valuation" 2nd ed, John Wiley & Sons ; Damodaran, 2012. "Investment Valuation: Tools and Techniques for Determining the Value of Any Assets" 3rd ed, John Wiley & Sons. (available online/physical copy in library)

Lecture notes will follow chapters 1-9 and 12 from Damodaran's textbook plus a few additional topics.

Recommended Resources

Pinto, Henry, Robinson & Stowe (2010) Equity Asset Valuation (2nd ed)

Ross, S., R. Westerfield, J. Jaffe, and B. Jordan, 2019. 'Corporate Finance', (12th ed).

Lonergan, 2003. ‘The Valuation of Businesses, Shares and Other Equity’ (4th ed)

Learning & Teaching Modes

The course is taught via seminar-based classes, reinforced through class participation in problem-solving.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week (over 12 weeks) to their studies. This means that you are expected to commit approximately 108 hours (9 hours x 12 week) for a three-unit course of private study outside of your seminars. Students are expected to attend all seminars.

Learning Activities Summary

Week Number	Topic Number	Topics for Study	Study guide	Guide Tutorial
1	1	An introduction to valuation & financial maths	Chp 1
2	2	Relationship between earnings and capital: Understanding financial reports	Chp 2	1
3	2	Relationship between earnings and capital: Understanding financial reports (continued)	Chp 2	2
4	3	Market based valuation: Price Multiples	Chp 6	3
5	4	Free cash flow models	Chp 3	4
6	-	Mid-semester test: More details will be provided early in the semester.	-	-
7	4, 5	Free cash flow models (continued) & Fundamental analysis and forecasting	Chp 3, 4	5
8	5	Fundamental analysis and forecasting (continued)	Chp 4	6
9	6	Estimating the discount rate	Chp 5	7
10	7	Takeovers	Chp 7	8
11	8	Financial distress and cross shareholding	Chp 8	9
12	9	Technical trading and other aspects of valuation	Chp 10	10

The University's policy on Assessment for Coursework Programs is based on the following four principles:

Assessment must encourage and reinforce learning.
Assessment must enable robust and fair judgements about student performance.
Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
Assessment must maintain academic standards.

Assessment Summary

Assessment Task	Due	Weighting	Learning Outcome
Mid Semester Test	Week 6	15%	1
Assignment	Week 12	25%	5
Final Exam	During exam period	60%	1,2,3,4
Total		100%

For specific due dates please see MyUni.

Assessment Related Requirements

Notes on Assessment
1. To gain a pass for this course, a total of at least 50% overall is required. Neither the test nor the assignment is redeemable.
2. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the final examination if markers cannot understand answers due to poor hand-writing.
3. Assessment marks prior to the final exam will be displayed on the course website. Students are encouraged to check their marks and notify the Lecturer-in-Charge of any discrepancies.

Assessment Detail

Test: 15 %
Details: Further information regarding the test will be provided during the semester.

Assignment: 25%
Details: The assignment is compulsory and will be made available on the 'myuni' website. The assignment is non-redeemable.

Final Exam: 60%
More details will be provided closer to the date.

Submission

SUBMISSION
Assignments
Assignments are compulsory and will be posted on the ‘MyUni’ website.
The assignment must be submitted electronically, by the group leader. Further details regarding the assignment will be provided during the semester.

PRESENTATION OF ASSIGNMENTS
• Please retain a copy of all assignments submitted.
• The group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment.

Lecturers can refuse to accept assignments that do not have a signed acknowledgement of the University’s policy on plagiarism.

ASSIGNMENT GUIDELINES INCLUDING REFERENCING DETAILS
A copy of the Postgraduate Programs: Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you to structure your assignments. A copy of the guide can also be downloaded from
This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations, etc.
In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)
The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide.

Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

LATE ASSIGNMENT SUBMISSION
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 20% mark reduction for each day that it is late. Assignments are non-redeemable.

RETURN OF ASSIGNMENTS
Lecturers aim to mark and publish the assignment score to students within two weeks of the due date with written feedback. Students are responsible for viewing their assignment scores on the "myuni" website.

Course Grading

Grades for your performance in this course will be awarded in accordance with the following scheme:

M10 (Coursework Mark Scheme)
Grade	Mark	Description
FNS		Fail No Submission
F	1-49	Fail
P	50-64	Pass
C	65-74	Credit
D	75-84	Distinction
HD	85-100	High Distinction
CN		Continuing
NFE		No Formal Examination
RP		Result Pending

Further details of the grades/results can be obtained from Examinations.

Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

Final results for this course will be made available through .

Student Feedback

The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

The 成人大片 is committed to regular reviews of the courses and programs it offers to students. The 成人大片 therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator

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