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Unit of study_

ACCT6003: Fundamental Analysis for Equity Investment

This unit develops a framework of fundamental analysis for equity investment in publicly traded companies. The first part of the unit deals with the analysis of financial statement information, complemented with other sources of information such as business strategy, industry prospects and key macroeconomic effects. Emphasis is on the analysis of earnings quality and accounting-based valuation methods. The second part of the unit applies fundamental analysis in the appraisal of equity investment, and the effect of credit evaluation and risk analysis, as well as the valuation for takeovers. The unit also covers the impact on equity valuation from inherent behavioural patterns in informing investment decisions.


Academic unit Accounting
Unit code ACCT6003
Unit name Fundamental Analysis for Equity Investment
Session, year
Semester 1, 2022
Attendance mode Normal day
Location Camperdown/Darlington, Sydney
Credit points 6

Enrolment rules

ACCT5001 and FINC5001
Assumed knowledge

QBUS5001 or QBUS5002

Available to study abroad and exchange students


Teaching staff and contact details

Coordinator Demetris Christodoulou,
Type Description Weight Due Length
Assignment hurdle task Take-home final project
Take-home final project.
40% -
Due date: 14 Jun 2021 at 12:00
3000 words
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
Assignment hurdle task Weekly Assignments
Weekly Assignments
60% Ongoing Varied lengths
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
hurdle task = hurdle task ?

Weekly assignments: There are 10 individual weekly assignments worth 6 marks each, thus all adding to the total of 60 marks (out of 100). The due date for weekly assignment will be advised in class. All late submissions will receive 0 marks because the answer to each assignment will be revealed at the submission deadling. Any approved special considerations for faling to submit an assignment on time will result in transferring the marks of that assignment to the final take-home project. This is a hurdle task and you must achieve at least 45% to pass the course (i.e. 27 marks).

Final take-home project: Instead of a final exam, you will be assigned a final take-home project worth 40 marks (out of 100). You will be assigned a public company for which you will be asked to perform financial analysis as required. The details of the take-home project will be released in weeks 7-8. This is a hurdle task and you must achieve at least 45% to pass the course (i.e. 18 marks). The standard university policy for penalising late submissions applies in this assignment.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range


High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 


75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.


65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.


50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 


0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, and the resources available to all students.

The University expects students and staff to act ethically and honestly and will treat all allegations of academic dishonesty or plagiarism seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic dishonesty. If such matches indicate evidence of plagiarism or other forms of dishonesty, your teacher is required to report your work for further investigation.

WK Topic Learning activity Learning outcomes
Week 01 Introduction to valuation and business strategy analysis Lecture (2 hr)  
Week 02 Using financial statements in valuation Lecture (2 hr)  
Week 2 workshop Workshop (1 hr)  
Week 03 Accounting analysis and earnings management Lecture (2 hr)  
Week 3 workshop Workshop (1 hr)  
Week 04 Principles of valuation models and cash-based valuation Lecture (2 hr)  
Week 4 workshop Workshop (1 hr)  
Week 05 Earnings-based valuation Lecture (2 hr)  
Week 5 workshop Workshop (1 hr)  
Week 06 Gaining value from fundamental analysis Lecture (2 hr)  
Week 6 workshop Workshop (1 hr)  
Week 07 How firms generate value Lecture (2 hr)  
Week 7 workshop Workshop (1 hr)  
Week 08 Reformulation of financial statements Lecture (2 hr)  
Week 8 workshop Workshop (1 hr)  
Week 09 Analysis of profitability Lecture (2 hr)  
Week 9 workshop Workshop (1 hr)  
Week 10 Prospective analysis of earnings growth Lecture (2 hr)  
Week 10 workshop Workshop (1 hr)  
Week 11 Credit analysis and distress Lecture (2 hr)  
Week 11 workshop Workshop (1 hr)  
Week 12 Financial policy Lecture (2 hr)  
Week 12 workshop Workshop (1 hr)  
Week 13 The behavioural side of financial analysts Lecture (2 hr)  
Week 13 workshop Workshop (1 hr)  

Attendance and class requirements

Lecture recordings: All lectures are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Prescribed textbook (optional purchase)

Penman, Stephen (2012), Financial Statement Analysis and Security Valuation, 5th Edition, McGraw-Hill.

Additional useful references

Palepu, K. G., Healy, P. M., and Peek, E. (2019), Business analysis and valuation: IFRS edition. 5th Edition, Cengage learning.

Contemporary Accounting – A Strategic Focus (10th ed) 2020. Phil Hancokc, Peter Robinson, Mike Bazley

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University’s graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. Learn to identify and analyse the key drivers of value creation within a business.
  • LO2. Evaluate and analyse the information presented in annual reports and financial statement as produced by financial accounting.
  • LO3. Develop an in-depth understanding of equity valuation models and approaches to estimating intrinsic equity prices for investment appraisal.
  • LO4. Apply financial analysis to analyse creditworthiness, liquidity and solvency.
  • LO5. Understand the impact of key behavioural biases when acting as a sell-side financial analyst.
  • LO6. Produce professional investment valuation reports, apply qualitative judgment that is informed by quantitative analysis, and communicate investment recommendations.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
Changes in learning activities and prescribed textbook.


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