- Class Number 2625
- Term Code 3030
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Nhan Le
- Dr Nhan Le
- Class Dates
- Class Start Date 24/02/2020
- Class End Date 05/06/2020
- Census Date 08/05/2020
- Last Date to Enrol 02/03/2020
Corporate Valuation is a “capstone” finance course that draws on core corporate finance principles, theories and methods previously studied. 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.
Upon successful completion, students will have the knowledge and skills to:
- Demonstrate an in depth knowledge of valuation essentials;
- Implement and communicate techniques used to place a value on a company’s operations; and
- Use valuation tools to plan and monitor key corporate decisions.
By working through corporate valuation cases, students will learn and exercise the necessary skills for financial industry based research. With the distinct feature of learning by doing, this course will train students in critical analysis of real-world problems in corporate financial decisions, and evaluation and communication of valuation results
Examination Material or equipment
Non-programmable scientific calculator and one A4 page with notes on both sides (can be typed).
Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6 Edition, Mc Kinsey & Co (John Wiley and Sons), 2015. [denoted ‘KGW’]
Students are expected to have access to a copy of the prescribed book for the duration of the semester. The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chifley Library.
Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012.
Additional materials will be made available on Wattle, including supplementary course notes, selected analyst reports, CFA readings, example worksheets, and other relevant items.
Students will be given feedback in the following forms in this course:
- written comments
- verbal comments
- feedback to whole class, groups, individuals, focus group etc
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.
Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures will be posted on the door of the relevant room.
Your final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed the scaled mark of that student), and may be either up or down.
Support for Students
The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/
Referencing is essential to demonstrate that you have read thoroughly, and acknowledges the ideas and materials of other authors in your work. Students are required to apply the ‘Harvard Style’ of referencing in completing written work, where applicable.
Refer to the College referencing guide for further details (http://cbe.anu.edu.au/students/student-information/examinations-assessment/).
As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions. Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.
|Week/Session||Summary of Activities||Assessment|
|1||Course overview Valuation in context Readings: KGW Ch 1; Ch 2; Ch 3|
|2||Building a company model Readings: KGW Ch 9||Team formation|
|3||Forecasting and model integrity Readings: KGW Ch 6; Ch 10; Ch 11|
|4||Cost of capital Readings: KGW Ch 13|
|5||DCF valuation Readings: KGW Ch 8; Ch 12; Ch 14||Online examination (via Wattle)|
|6||Multiple-based valuations Readings: KGW Ch 16; Ch 17|
|7||Asset-based valuations Readings: Damodaran Ch 19; Ch 25; KGW Ch 34|
|8||Incorporating growth potential Readings: KGW Ch 7; Ch 27|
|9||Sensitivity and scenario analysis Readings: Damodaran Ch 33; KGW Ch 15|
|10||The investment decision (forming a recommendation) Readings: KGW Ch 4; Ch 5||Assignment due|
|11||Special issues: Cross-border valuation, Valuing high growth firms, Evaluating management, WACC as a value-driver Readings: KGW Ch 23; Ch 29; Ch 32|
|12||Special issues: Evaluating management, WACC as a value-driver, cyclical companies Readings: KGW Ch32, Ch33, Ch34; Review and guidance for the final exam|
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 task||Value||Due Date||Return of assessment||Learning Outcomes|
|Online examination - 1 hour duration||10 %||27/03/2020||27/03/2020||1,3|
|Company valuation||30 %||15/05/2020||15/05/2020||1,2,3|
|Final Examination – 3-hour duration||60 %||04/06/2020||02/07/2020||1,2,3|
* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details
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:
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. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.
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.
Commencing week 2, the lecturer will conduct a workshop of one hour per week. The week 2 workshop will introduce the “KGW model” template, and offer general advice on modelling in Microsoft Excel. From week 3, general guidance will be given on how to complete analysis for your company, including discussing methods and addressing any common problems or matters raised by students. At least one member from each team MUST attend, although all should attend with prepared questions.
Final examination is of 3-hour duration. This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. Refer to "Assessment tasks" for further information.
Assessment Task 1
Learning Outcomes: 1,3
Online examination - 1 hour duration
Total weighting: 10%
It is an online exam conducted via Wattle, consisting of multiple choice questions only. The exam will be available on Wattle from 7pm to 10pm on Mar 27, 2020. You will have one hour from the time you start to finish the exam. The questions will be of practical (numerical) nature and students will need to review and revise all material covered in lectures 1 to 5, inclusive, as well as the corresponding tutorial material. More details regarding the exam will be provided by week 3.
Assessment Task 2
Learning Outcomes: 1,2,3
Total weighting: 30%
It is a group-based assignment. Team formation will be done by the Lecturer in week 2.
Note: It is requested that any students intending to drop out of the course make their decision as soon as they can.
Produce a company valuation report including DCF and multiple-based valuation of your company, valuation analysis and investment recommendations. See “Assignment Guidelines” on Wattle, to be posted in week 2, for further details on assignments, including objectives, requirements, guidance and marking criteria.
What You Need To Submit
1. Company model – integrated financial accounts, forecasts, valuation, summary tables and charts
2. Valuation analysis and investment recommendations
3. Use Turninit for submission
4. All files submitted to be named as follows: FINM7044 - Team ## - Company name
Assessment Task 3
Learning Outcomes: 1,2,3
Final Examination – 3-hour duration
Total weighting: 60%
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 1-12) 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.
Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Further information about the examination will be provided in class and on Wattle by week 8.
Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.
The ANU commits to assisting all members of our community to 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 be familiar with the academic integrity principle and Academic Misconduct Rule, 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 Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.
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. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.
No hardcopy submission is required.
Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, a mark of 0 will be awarded.
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.
Feedback on the assignment will be returned via Wattle or email by the date as set out in the "Assessment" section.
Extensions and Penalties
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted 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.
Resubmission of Assignments
No resubmission of assignment is accepted.
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
Corporate bankruptcy; Labor; Banking; Real estate market
Dr Nhan Le