Content, progress and pedagogy of the module

This module aims to reinforce the understanding of business valuation by developing deeper valuation skills through an application of the methods learned from earlier courses in practice. Students will go through the process of analysing a designated publicly-traded company and will be asked to produce an equity analyst report in which they should provide recommendations “to buy, sell or hold” a company following the written analysis. The module will provide an overview of how to prepare a professional valuation report that includes: company’s description, industry overview, competitive positioning, expected financials, growth perspectives, risk analysis, valuation, and environmental, social, and governance analysis. As part of the module, students can participate in the annual global research challenge competition organized by the CFA Institute. In this competition, students will gain real-world experience through performing the role of a research analyst.

All students will receive advice and support from a faculty advisor and those participating in the CFA research challenge will get an extensive support from an industry mentor. The module will make use of integrated software solutions for problem-solving, and will use Excel tools to develop student’s competencies in developing valuation models and in applying financial analysis for strategic corporate decisions. During this module, students will improve their analytical, valuation, report writing, and presentation skills.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• understanding business valuation, ability to identify sources of value in a business and preparing a technically correct and comprehensive equity analyst report.
• the strengths and limitations of different valuation techniques.
• financial planning and modelling and application of valuation techniques in real-world scenario.

Skills

The objective is that the student after the module possesses the necessary skills in:

• writing an equity analyst report and developing soft skills in handling Q&A sessions.
• digital modeling which enables students to recognize an unbiased value of a sustainable business model.
• developing an effective equity analyst presentation based on the report.

Competences

The objective is that the student after the module possesses the necessary competences in:

• assessing how the quality of the business impacts value.
• analysing financial statements to better understand the main drivers of free cash flow and the application of comparable company analysis in business valuation.
• analysing investment, financing, strategic corporate decisions, and developing valuation models in excel.

Type of instruction

For information see § 17.

Exam

Exams