Corporate Valuation is a “capstone” finance course that draws on core corporate finance principles, theories and methods previously studies.  Students will work in teams to value an existing company, present their analysis and investment recommendation.  The techniques covered include discounted cash flow, multiple-based and asset-based valuations.  Because of the richness of the approach, most of the focus will be on discounted cash flow analysis.  While this entails more work and requires significant student initiative, this type of ‘learning by doing’ should provide a lasting framework.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Understand and apply techniques for company valuation;
2. Appreciate how to apply theories and concepts learned in other courses;
3. Become more effective at working in teams.

Research-Led Teaching

Students undertaking this course will be imparted with the necessary skills for industry-based research. This will include involving students in critical analysis of industry-based problems such as valuation, capital budgeting and risk assessment.

Examination Material or equipment

A non-programmable calculator

Required Resources

Prescribed Text (available as an eBook via the ANU Library)

Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6^th Edition, Mc Kinsey & Co (John Wiley and Sons), 2015.   [denoted ‘KGW’]

Other Required Readings

CFA Institute Code of Ethics and Standards of Professional Conduct

http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n6.1

 

CFA Institute Standards of Practice Handbook (Standard V) (SPH)

http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n4.1

Recommended Resources

Other Reading (available as an eBook via the ANU Library)

Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written comments
• Verbal comments
• Feedback to the whole class
• Feedback to groups

Continuous improvement                                    

We use feedback from students, professional bodies and staff to make regular improvements to the course. In response to this feedback, design improvements from the previous version of the course include:

• Weekly tutorials throughout the semester
• A reduction in the number of assignments
• Additional practice questions for the final examination

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Topic: Course overview & Valuation in context Activity: Lecture 1 Required student preparation: KGW Ch 1; Ch 2; Ch 3
2	Topic: Building a company model & Reorganising the financial statements Activity: Lecture 2, Tutorial 1 Required student preparation: KGW Ch 9
3	Topic: Forecasting and model integrity Activity: Lecture 3, Tutorial 2 Required student preparation: KGW Ch 6, Ch 10, Ch 11
4	Topic: Cost of capital Activity: Lecture 4, Tutorial 3 Required student preparation: KGW Ch 13, Course Note 1
5	Topic: DCF valuation Activity: Lecture 5, Tutorial 4 Required student preparation: KGW Ch 8; Ch 12; Ch 14	Quiz
6	Topic: Incorporating growth potential Activity: Lecture 6, Tutorial 5 Required student preparation: KGW Ch 7; Ch 27
7	Topic: Multiple-based valuations: Price/Earnings ratios Enterprise value Others: cash flow multiples, dividend yield, price/sales. Activity: Lecture 7, Tutorial 6 Required student preparation: KGW Ch 16, Course Note 2 (pp 1-6)	Assignment 1 due Mid-semester examination
8	Topic: Asset-based valuations: Price/Book Sum-of-the-Parts Takeover valuation Activity: Lecture 8, Tutorial 7 Required student preparation: Damodaran Ch 19; Ch 25, KGW Ch 17, Course Note 2 (pp 7-10)
9	Topic: Sensitivity and scenario analysis Activity: Lecture 9, Tutorial 8 Required student preparation: KGW Ch 15, Damodaran Ch 33,
10	Topic: Forming a recommendation Activity: Lecture 10, Tutorial 9 Required student preparation: KGW Ch 4; Ch 5
11	Topic: Special issues: Cross-border valuation Valuing high growth firms Evaluating management WACC as a value-driver Activity: Lecture 11, Tutorial 10 Required student preparation: KGW Ch 23; Ch 29; Ch 32, CFA Code of Ethics; Standard of Practice Handbook - Part V (pp 127-147)	Assignment 2 due
12	Topic: Review Activity: Lecture 12, Tutorial 11

Tutorial Registration

Tutorial signup for this course will be done via Wattle. Detailed information about signup times will be provided on Wattle or during your first lecture. When tutorials are available for enrolment, follow these steps:

1.   Log on to Wattle, and go to the course site

2.   Click on the link “Tutorial enrolment”

3.   On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter

4.   Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Quiz - 15 mins duration (Week 5)	5 %	29/03/2019	01/04/2019	1
Assignment 1: Company model and DCF valuation	20 %	26/04/2019	10/05/2019	1-3
Mid-Semester Examination – 1 hour duration (Week 7)	15 %	26/04/2019	29/04/2019	1
Assignment 2: Multiple and asset-based valuation, and final report	20 %	24/05/2019	05/06/2019	1-3
Final Examination – 3 hours duration (TBA)	40 %	06/06/2019	04/07/2019	1-2

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Assessment Task 1

Quiz - 15 mins duration (Week 5)

Date: 29-03-2019, at 2pm (Online via Wattle)

Value or weighting: 5% (or 0% if the quiz is not attempted or redeemed)

Additional information: This will be an online quiz conducted via Wattle, consisting of multiple choice questions only. The purpose of the quiz is to provide students with feedback on their understanding of the material, prior to the mid-semester exam. The questions will be of practical (numerical) and/or theory in nature and students will need to review and revise all material covered in lectures 1 to 4, inclusive, as well as the corresponding tutorial material. The quiz is optional and redeemable, and will be held during the scheduled Workshop time for Week 5, however there will be no Workshop held in this week. Results for the quiz will be available on Wattle, by Monday 1 Apr, 2019. More details will be provided as the quiz approaches.

Assessment Task 2

Assignment 1: Company model and DCF valuation

Due Date: 26 April 2019, by 4pm (Week 7)

Value or weighting: 20%

Additional information: An assignment handout will be provided on Wattle at the commencement of semester, with details elaborated in class. This assignment is to be submitted electronically via Wattle by 4pm, Friday 26 April 2019.

Team formation: Both Assignments 1 and 2 are to be completed in a group containing 4 - 6 students (ideally 5). Students should commence forming groups as soon as possible, and once decided upon, email the Lecturer with the details of their group (student names and IDs of each member), with all group members included as recipients to the email. To assist students in finding a group, a discussion forum will be available via Wattle, in Week 1, where students may post their desire to find a group, and/or existing groups looking for additional members. The deadline for forming groups will be the end of Week 3.

Assessment Task 3

Mid-Semester Examination – 1 hour duration (Week 7)

Date: 26 April, 2019, at 2pm (Online via Wattle)

Value or weighting: 15% (or 0% if the mid-semester exam is not attempted or redeemed)

Additional information: This will be an online exam conducted via Wattle, consisting of multiple choice questions only. The questions will be of practical (numerical) and/or theory in nature and students will need to review and revise all material covered in lectures 1 to 6, inclusive, as well as the corresponding tutorial material. This exam is optional and redeemable for students in this course. The exam will be held during the scheduled Workshop time for Week 7, however there will be no Workshop held in this week. Results for the exam will be available on Wattle, by Monday 29 Apr, 2019. More details regarding the exam will be provided as the exam approaches.

Assessment Task 4

Assignment 2: Multiple and asset-based valuation, and final report

Due Date: 17 October 2019, by 4pm (Week 11)

Value or weighting: 20%

Additional information: An assignment handout will be provided on Wattle at the commencement of semester, with details elaborated in class. This assignment is to be submitted electronically via Wattle by 4pm, Thursday 17 October 2019.

Team Formation: Both Assignments 1 and 2 are to be completed in a group containing 4 - 6 students (ideally 5). Students should commence forming groups as soon as possible, and once decided upon, email the Lecturer with the details of their group (student names and IDs of each member), with all group members included as recipients to the email. To assist students in finding a group, a discussion forum will be available via Wattle, in Week 1, where students may post their desire to find a group, and/or existing groups looking for additional members. The deadline for forming groups will be the end of Week 3.

Assessment Task 5

Final Examination – 3 hours duration (TBA)

Date: To be scheduled by the ANU examinations office to take place during the final exam period.

Value or weighting: 40% (or up to 60% if both the quiz and mid-semester examination are redeemed)

This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. A mixture of theory and practical (numerical) questions will be asked. Students will need to review and revise all material (weeks 1-11) pertaining to the course. Students will be provided with further details regarding the exam as it approaches. The marking criteria will be based on model solutions and answers prepared by the lecturer.

 

The final exam is designed to: (i) test the student’s understanding and comprehension of the course material; (ii) ensure they have obtained the learning objectives of the course.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

Assignments for this course are submitted using Turnitin in the course Wattle site. You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Assignments must include the cover sheet available on Wattle. Please keep a copy of tasks completed for your records.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Assignment marks will be uploaded to the Wattle gradebook for the course. The lecturer will detail the procedure for collection of assignments containing any comments on Wattle, upon completion of marking.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students