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GRA 6220 Corporate Valuation

GRA 6220 Corporate Valuation

Course code: 
GRA 6220
Department: 
Accounting, Auditing and Business Analytics
Credits: 
6
Course coordinator: 
Christopher Bleibtreu
Product category: 
Master
Portfolio: 
Master of Accounting and Auditing
Semester: 
2020 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

The main objective of this course is to provide students with the tools to carry out a business valuation using residual income valuation techniques.

We study the actual financial statements of publicly-traded companies in the assignments that we discuss in class. The course combines accounting principles and investment principles to answer the question: How do I account for value so that I can challenge stock prices with some confidence?

Learning outcomes - Knowledge

The student will through the course acquire the necessary knowledge about financial statement analysis and valuation in order to write a credible valuation report based on accounting numbers. This includes profitability, growth, and liquidity analyses, reformulation of annual reports, different valuation methods, and tools to estimate the risk of businesses.

 

 

    Learning outcomes - Skills

    By the end of the course, students should be able to:

    • prepare a thorough valuation analysis including sensitivity analysis on the key assumptions.
    • understand the factors determining quality of accounting information from an investor perspective and demonstrate written communication skills in relation to the analysis of company financial statement information from a valuation perspective.
    • understand and interpret  cash-flows, dividends, earnings, and book values and be able to use them for valuation purposes.
    • infer the market expectations about growth implicit in the stock prices.
    • perform a ratio analysis and understand the factors influencing the different ratios.
    • evaluate equity and debt risk.
      General Competence

      By the end of the course, students should be able to critically evaluate the information available in the annual reports of corporations. Students should also be able to critically assess the quality of the accounting information contained in the annual reports, and understand the implications of poor accounting quality in financial statement analysis and valuation.

      Course content
      • Introduction to investing and valuation
      • Accounting quality analysis
      • Reformulation of  financial statements
      • Valuation using multiples
      • Residual income valuation models
      • Analysis of risk and return
      • Forecasting analysis
      • Writing an equity reserach report
      Teaching and learning activities

      -

      Software tools
      No specified computer-based tools are required.
      Additional information

      Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.

      All parts of the assessment must be passed in order to get a grade in the course.

      Qualifications

      All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

      Required prerequisite knowledge

      GRA 6225 Financial Statement Analysis or similar.

      Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
      Exam category:
      Submission
      Form of assessment:
      Written submission
      Exam code:
      GRA 62201
      Grading scale:
      ECTS
      Grading rules:
      Internal and external examiner
      Resit:
      Examination when next scheduled course
      30No 1 Week(s)Group (1 - 3)Assignment (mid-term paper)
      Exam category:
      Submission
      Form of assessment:
      Written submission
      Exam code:
      GRA 62202
      Grading scale:
      ECTS
      Grading rules:
      Internal and external examiner
      Resit:
      Examination when next scheduled course
      70Yes3 Hour(s)
      • BI-approved exam calculator
      • Simple calculator
      • Bilingual dictionary
      Individual Written examination under supervision.
      Exams:
      Exam category:Submission
      Form of assessment:Written submission
      Weight:30
      Invigilation:No
      Grouping (size):Group (1-3)
      Support materials:
      Duration: 1 Week(s)
      Comment:Assignment (mid-term paper)
      Exam code:GRA 62201
      Grading scale:ECTS
      Resit:Examination when next scheduled course
      Exam category:Submission
      Form of assessment:Written submission
      Weight:70
      Invigilation:Yes
      Grouping (size):Individual
      Support materials:
      • BI-approved exam calculator
      • Simple calculator
      • Bilingual dictionary
      Duration:3 Hour(s)
      Comment:Written examination under supervision.
      Exam code:GRA 62202
      Grading scale:ECTS
      Resit:Examination when next scheduled course
      Type of Assessment: 
      Ordinary examination
      Total weight: 
      100