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Unit of study_

FINC3015: Financial Valuation: Case Study Approach

Semester 1, 2023 [Normal day] - Remote

This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures and some related accounting concepts. The subject aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real-world corporate valuations.

Unit details and rules

Unit code FINC3015
Academic unit Finance
Credit points 6
Prohibitions
? 
FINC3005
Prerequisites
? 
FINC2012
Corequisites
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Angelo Aspris, angelo.aspris@sydney.edu.au
Lecturer(s) Angelo Aspris, angelo.aspris@sydney.edu.au
Type Description Weight Due Length
Supervised exam
? 
Final exam
The final exam will test your course knowledge. It is closed-book.
30% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4
Assignment Individual Case Study Report
Examination of a listed company with a focus on pro-forma modelling.
35% Week 07
Due date: 14 Apr 2023 at 23:59

Closing date: 21 Apr 2023
To be advised in assignment brief.
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
Assignment group assignment Group Assignment
Prepare a research report (and oral presentation) for a listed company.
35% Week 12
Due date: 19 May 2023 at 23:59

Closing date: 19 May 2023
To be advised in assignment brief.
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
group assignment = group assignment ?

Assessment summary

These assessments will examine a student’s ability to carry out a valuation giving consideration to structure, valuation conventions, and methodological issues. 

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

Description

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. 

Distinction

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.

Credit

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.

Pass

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. 

Fail

0 - 49

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

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

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.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

As prescribed by the University and Business School.

Academic integrity

The Current Student website  provides information on academic integrity 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 integrity breaches seriously.  

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

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 01 Introductory concepts in financial valuations Online class (2 hr) LO1 LO2
Workshop 1: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 02 Accounting for Valuation Analysis Online class (2 hr) LO1 LO2 LO3
Introductory concepts in financial valuations Tutorial (1 hr) LO1 LO2
Workshop 2: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 03 Financial Statement Analysis (FSA) and Pro-forma statement building Online class (2 hr) LO1 LO2 LO3
Accounting for Valuation Analysis Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 3: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 04 Analysing firm environment and operations Online class (2 hr) LO1 LO2 LO3
Financial Statement Analysis (FSA) and Pro-forma statement building Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 4: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 05 Forecasting and valuing cash flows (FCF) Online class (2 hr) LO1 LO2 LO3 LO4
Analysing firm environment and operations Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 5: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 06 Alternative Valuation Models and Risk (sensitivity / scenario) analysis Online class (2 hr) LO1 LO2 LO3 LO4
Forecasting and valuing cash flows (FCF) Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 6: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 07 The cost of capital (cost of equity / cost of debt) Online class (2 hr) LO1 LO2 LO3 LO4
Alternative Valuation Models and Risk (sensitivity / scenario) analysis Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 7: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 08 The cost of capital (cost of equity / cost of debt) Online class (2 hr) LO1 LO2 LO3 LO4
The cost of capital (cost of equity / cost of debt) Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 8: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 09 Relative valuation and the market for comparables Online class (2 hr) LO1 LO2 LO3 LO4
The cost of capital (cost of equity / cost of debt) Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 9: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 10 Valuation in a private equity setting Online class (2 hr) LO1 LO2 LO3 LO4
Relative valuation and the market for comparables Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 10: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 11 Valuation in a Private Equity Setting Online class (2 hr) LO1 LO2 LO3 LO4
Valuation in a private equity setting Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 11: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 12 Valuation of Digital Assets Online class (2 hr) LO1 LO2 LO3 LO4
Valuation in a private equity setting + Valuation of Digital Assets Tutorial (1 hr) LO1 LO2 LO3 LO4
Workshop 12: Excel Modelling Online class (1 hr) LO1 LO2 LO3 LO4
Week 13 Review and Final Exam Preparation Online class (1 hr) LO1 LO2 LO3 LO4
Case Presentations Tutorial (1 hr) LO1 LO2 LO3 LO4 LO5

Attendance and class requirements

Attendance is highly recommended. For this semester lectures will be recorded ahead of time and placed on Canvas. Tutorials are face-to-face and workshops are online live-streams. Every attempt will be made to record one of the workshop sessions each week which will then be made available to students at the end of the week. We cannot guarantee, however that recordings workshop recordings will work so attendance to your designated session is highly recommended.

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

All readings for this unit will be placed on Canvas. The following reference text(s) are recommended:

  • Titman, S. and Martin, J.D, “Valuation: The Art and Science of Corporate Investment Decisions” (3rd Edition), Pearson, 2020.
  • Pinto, J., Henry, E., Robinson, T., Stowe, J., “Equity Asset Valuation (3rd Edition), 2015. ISBN-13: 978-1119104261

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. Explain the approaches to and solve practical financial problems using a range of valuation techniques
  • LO2. Critically evaluate the models and approaches covered in this Unit of Study
  • LO3. Use Microsoft Excel effectively to model and solve valuation problems
  • LO4. Effectively communicate valuation results through a range of quantitative and qualitative outputs
  • LO5. Work collaboratively in a team to address and resolve complex valuation problems, while sharpening negotiation and influencing skills

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
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

Improvements are part of the evolution of this course. For this semester we have made a number of changes to the structure of the course, course content, and assessment structure. These will be communicated throughout the course of the semester.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.