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.

Learning Outcomes

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

1. Demonstrate an in depth knowledge of valuation essentials;
2. Implement and communicate techniques used to place a value on a company’s operations; and
3. Use valuation tools to plan and monitor key corporate decisions.

Research-Led Teaching

By working through corporate valuation cases, students will learn and exercise the necessary skills for 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

There will be an open-book final examination, for which any material will be allowed.

Required Resources

Prescribed Textbook (available as an eBook via the ANU Library): Damodaran, A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012.

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 ANU Library.

Valuation Case: to be distributed

Other 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): Koller, T., Goedhart, M., and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6th Edition, McKinsey & Co (John Wiley and Sons), 2015.

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 ANU Library.

Staff Feedback

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

• written comments
• verbal comments
• feedback to whole class, groups, individuals etc

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.

Other Information

Announcements: Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations.

Intra-group Assessment: At the end of this course, each student will be asked to submit a confidential assessment of each group member’s overall contribution to the group work. This information, being verified, may be used to make necessary within-group adjustments to group-work marks.

 

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/

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Topic: Introduction to Valuation Readings: Damodaran Ch 1, Ch 2
2	Topic: Financial Statements and Profitability Measurements Readings: Damodaran Ch 3; KGW Ch 9, Ch 10	Study Groups Are Finalised.
3	Topic: Forecasting and Free Cash Flow Readings: Damodaran Ch 10; KGW Ch 11
4	Topic: Risk, Cost of Capital, Capital Structure Readings: Damodaran Ch 4, Ch 7, Ch 8
5	Topic: DCF Valuation Readings: Damodaran Ch 12, Ch 14, Ch 15	Problem Set Due
6	Topic: Relative Valuation Readings: Damodaran Ch 17, Ch 18, Ch 19
7	Topic: Valuing Private Firms, IPOs Readings: Damodaran Ch 24
8	Topic: Valuation Case Readings: Assigned Case Material	Case Report Due
9	Topic: M&As and LBO Valuation Readings: Damodaran Ch 25
10	Topic: Advanced Issues Readings: Course Notes
11	Topic: Further Valuation Issues Readings: Course Notes
12	Topic: Review Readings: Review Notes, Sample Exam Questions	Term Project Due

Tutorial Registration

No tutorials or workshops

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Problem Set	10 %	25/08/2020	04/09/2020	1,2
Case Report	15 %	28/09/2020	12/10/2020	1,2,3,5
Term Project	30 %	30/10/2020	16/11/2020	1,2,3,5
Final Examination – open-book, 3 hours duration (TBA)	45 %	*	*	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. 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.

Participation

Assessment Task 1

Problem Set

Due date: Tuesday 25 August 2020 (Week 5)

The Problem Set is a group-based assignment. It will consist of assignment questions of applying finance theories and analytical techniques in valuation analysis discussed in class. Detailed information and requirements for the Problem Set will be distributed to students in class. Questions will be released 3 weeks before due date.

Submission: Submit your work using wattle (online). Your submission should include two files: a PDF file for your answers and an excel file for your supporting spreadsheets (containing computation information). The files should be named as "FINM7044 Group XX - Problem Set - Answer" and "FINM7044 Group XX - Problem Set - Spreadsheets" respectively.

Information about group work: Assessment Tasks 1 to 3 are all group-based assignments. Team formation will be done by the instructor in week 1, which is to be finalised in week 2. It is requested that any students intending to drop the course make their decision prior to team formation being finalised. All the three assignments are to be done in the same groups.

Assessment Task 2

Case Report

Due Date: Monday 28 Sept 2020 (Week 8)

A valuation case from real-world financial decisions will be analysed. Students are required to work on the case in advance and each group needs to submit a written case analysis (i.e., the Case Report) before class discussion. Detailed information and requirements for the case will be distributed to students in class. Questions will be released 3 weeks before due date.

Submission: Submit your work using wattle (online). Your submission should include two files: a PDF file for your Case Report and an excel file for your supporting spreadsheets (containing computation information). The files should be named as "FINM7044 Group XX - Case Report - Answer" and "FINM7044 Group XX - Case Report - Spreadsheets" respectively.

Assessment Task 3

Term Project

Due Date: Friday 30 Oct 2020 (Week 12)

The term project entails analysing a real-world case of corporate valuation with a firm of each group’s choice to illustrate corporate decision-making. Each group needs to submit a one-page project proposal in week 9, and discuss with the course instructor about the project topic. Detailed information and requirements for the project will be distributed to students in class. Questions will be released 3 weeks before due date.

Submission: Submit your work using wattle (online). Your submission should include two files: a PDF file for your term project Report and an excel file for your supporting spreadsheets (containing computation information). The files should be named as "FINM7044 Group XX - Project - Answer" and "FINM7044 Group XX - Project - Spreadsheets" respectively.

Assessment Task 4

Final Examination – open-book, 3 hours duration (TBA)

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

This 3-hour open-book exam is designed to test the student’s understanding and comprehension of the course material and ensure they have obtained the learning objectives of the course. Students are free to use any relevant material. A mixture of theory and practical questions will be asked. Students will need to review all material pertaining to the course. Students will be provided with further details regarding the exam in week 12. The marking criteria will be based on model solutions and answers prepared by the lecturer.

Academic Integrity

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.

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. Assignments must include the cover sheet provided on the course Wattle site. Please keep a copy of tasks completed for your records.

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 ANU Online.

Hardcopy Submission

No hardcopy submission is required.

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.

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